In the wake of the Federal Trade Commission’s antitrust lawsuit filed against Amazon on Tuesday, the e-commerce giant and its CEO, Jeff Bezos, are already taking a financial hit.
On Tuesday, the FTC — along with 17 state attorneys general — filed a lawsuit against Amazon, alleging that the company engaged in anticompetitive practices, unfairly promoting its own products and brands, and stifling competition.
Amazon has denied the allegations and defended its business practices, but that hasn’t stopped the tech giant from feeling the pinch of the high-profile lawsuit.
On Tuesday, following the announcement of the FTC’s lawsuit, Amazon stock fell by 3.28%. As of Thursday afternoon, stocks are still down and stand at about $126 a share, down from $131 on Monday.
As for Bezos, his net worth declined by $5 billion on Tuesday, from $155 billion to $150 billion — where it still stands as of Thursday, according to the Bloomberg Billionaire Index.
Jeff Bezos’ net worth dropped by $5 billion following the FTC lawsuit news. Paul Ellis | Getty Images.
Despite the drop, Bezo’s net worth is still in the green for the year, up $43 million, according to Bloomberg. However, with the outcome of the lawsuit still in flux, it remains to be known how much the tech giant and Bezos could lose due to the FTC complaint.
The lawsuit alleges that Amazon has created an illegal monopoly, and engaged in a “cycle of dominance and harm,” affecting both consumers and sellers. The 172-page complaint alleges that the company entices sellers and shoppers with the promise of a vast customer base and low prices, but then “exploits” them through increased fees, advertising, fulfillment service mandates, and “punishment” for selling elsewhere. The FTC argues that the cycle results in a poor experience for users and artificially high prices.
In an official statement, Amazon has defended its practices and called the lawsuit “misguided,” adding that the lawsuit “reveals the Commission’s fundamental misunderstanding of retail.”
This story originally appeared on Entrepreneur
