Amazon.com is undergoing changes to its private clothing brands in an effort to cut costs and address concerns related to antitrust regulations, as reported by the Wall Street Journal. The company plans to eliminate 27 out of its 30 in-house clothing labels, retaining only Amazon Essentials, Amazon Collection, and Amazon Aware. Additionally, Amazon will be phasing out its private-label furniture brands, Rivet and Stone & Beam, as their stock diminishes.

Matt Taddy, Vice President of Amazon Private Brands, stated that the decision to discontinue certain products is based on customer demand. Taddy explained, “If there are products that aren’t resonating with customers, we deprecate those items and look for other opportunities to better meet their needs.”

The Wall Street Journal has previously reported that Amazon was considering exiting the private brands business as a potential concession to the U.S. Federal Trade Commission (FTC) in anticipation of an antitrust lawsuit. The FTC initiated an investigation into Amazon during the Trump administration as part of a larger examination into major technology companies suspected of violating antitrust laws. Amazon has faced criticism for allegedly giving preferential treatment to its own products over external sellers on its platform. However, the company has consistently denied any wrongdoing.

As reported by Reuters, Amazon is scheduled to meet with the FTC next week to present arguments against the filing of an antitrust suit. The company will strive to convince the agency that such action is unjustified.

For additional information on antitrust regulations and Amazon’s potential antitrust lawsuit, please refer to the following links:
1. FTC Guide to Antitrust Laws
2. Financial Times Article on Amazon and Antitrust