FTC asks to delay Amazon Prime deceptive practices case, citing staffing shortfalls
Bloomberg | Bloomberg | Getty Images
The Federal Trade Commission asked a judge in Seattle to delay the start of its trial accusing Amazon of duping consumers into signing up for its Prime program, citing resource constraints.
Attorneys for the FTC made the request during a status hearing on Wednesday before Judge John Chun in the U.S. District Court for the Western District of Washington. Chun had set a Sept. 22 start date for the trial.
Jonathan Cohen, an attorney for the FTC, asked Chun for a two-month continuance on the case due to staffing and budgetary shortfalls.
The FTC’s request comes amid a push by the Trump administration’s Department of Government Efficiency to reduce spending. DOGE, which is led by tech baron Elon Musk, has slashed the federal government’s workforce by more than 62,000 workers in February alone.
“We have lost employees in the agency, in our division and on our case team,” Cohen said.
Chun asked Cohen how the FTC’s situation “will be different in two months” if the agency is “in crisis now, as far as resources.” Cohen responded by saying that he “cannot guarantee if things won’t be even worse.” He pointed to the possibility that the FTC may have to move to another office “unexpectedly,” which could hamper its ability to prepare for the trial.
“But there’s a lot of reason to believe … we may have been through the brunt of it, at least for a little while,” Cohen said.
John Hueston, an attorney for Amazon, disputed Cohen’s request to push back the trial date.
“There has been no showing on this call that the government does not have the resources to proceed to trial with the trial date as presently set,” Hueston said. “What I heard is that they’ve got the whole trial team still intact. Maybe there’s going to be an office move. And by the way, both in government and private sector, I’ve never heard of an office move being more than a few days disruptive.”
The FTC sued Amazon in June 2023, alleging that the online retailer was deceiving millions of customers into signing up for its Prime program and sabotaging their attempts to cancel it. Amazon has denied any wrongdoing, calling the FTC’s claims “wrong on the facts and the law.”
“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” former FTC Chair Lina Khan said at the time.
The FTC brought a separate case against Amazon in September 2023 accusing it of wielding an illegal monopoly. The agency alleged that Amazon prevents sellers from offering cheaper prices elsewhere through its anti-discounting measures. That case is set to go to trial in October 2026.
In the time since the FTC filed its cases, Khan has been replaced as the head of the FTC by Trump appointee Andrew Ferguson. Tech companies, which are the target of several regulatory agencies, have sought to curry favor with Trump, including Amazon founder and executive chairman Jeff Bezos. He attended President Donald Trump’s inauguration in January, and Amazon was among several tech companies to donate $1 million to Trump’s inauguration committee.
WATCH: Trump FTC Chair tells CEOs it will crack down on conduct or mergers that hurt Americans
Emilija Manevska | Moment | Getty Images
Artificial intelligence startup Cursor on Thursday announced it has closed a $2.3 billion funding round at a $29.3 billion post-money valuation, nearly triple what it was worth as of its last raise in June.
Tune in at 4:30 p.m. ET as Cursor CEO Michael Truell joins “Closing Bell: Overtime” to discuss the funding round. Watch in real time on CNBC+ or the CNBC Pro stream.
Cursor built a popular AI coding tool that helps software developers generate, edit and review code. Its parent company, Anysphere, is an applied research lab that was founded in 2022.
Cursor is one of just a handful of AI startups, including OpenAI, Anthropic, xAI, Safe Superintelligence and Thinking Machines, that are valued at over $10 billion.
Investors including Accel, Thrive Capital, Andreessen Horowitz, DST Global, Coatue, Nvidia and Google participated in its latest funding round, according to a blog post.
“This funding will allow us to invest deeply in our research and build Cursor’s next magical moments,” Cursor said.
Since the tool first launched in 2023, Cursor said it has crossed $1 billion in annualized revenue and swelled to more than 300 employees.
Nvidia CEO Jensen Huang called the company his “favorite enterprise AI service” in an interview on CNBC’s “Squawk Box” in October.
The company said its in-house models generate more code than “almost” any other large language models in the world.
The coding tool market has grown more crowded in recent months as it’s proved to be a lucrative AI use case. Cursor competes with companies like OpenAI, Anthropic and Cognition, which acquired the AI coding startup Windsurf in July.
OpenAI approached Anysphere earlier this year about potentially purchasing Cursor, but the deal failed to gain traction, as CNBC previously reported. OpenAI was also briefly in talks to acquire Windsurf before ultimately introducing its own coding tool called Codex in May.
In September, Anthropic said its coding tool Claude Code has already generated more than $500 million in run-rate revenue for the company since its full launch in May. As of July, Windsurf was generating $82 million in annual recurring revenue, Cognition said in a blog post at the time.
“Internally, we often talk about how high the ceiling is for how great Cursor can become, and how much work still remains to get there,” Cursor said.
WATCH: Every engineer is being turbocharged by AI, says Macroscope CEO Kayvon Beykpour
Verizon chairman Mark Bertolini said Thursday that the company’s new CEO, former PayPal boss Dan Schulman, is working to revive Verizon from its period of share losses under former CEO Hans Vestberg.
Bertolini, who is also the Oscar Health CEO and who was named Verizon chairman last month, told CNBC’s Becky Quick on “Squawk Box” that the company needs to “do something different” as it undergoes its leadership change.
“Verizon has gone from number one in market cap, bond ratings and market share to number three. And the network isn’t as differentiated as it used to be, in large part because everybody’s been spending money to put these 5G networks in place,” Bertolini said. “So losing 30% share over the last eight years is an issue, and we have to do something different.”
In October, the company announced Schulman would be replacing Vestberg, who had led the company since 2018. In a statement at the time, Schulman said Verizon was at a “critical juncture” and that he believed the company had a “clear opportunity to redefine our trajectory.”
Schulman previously led PayPal through significant revenue growth and has served on Verizon’s board of directors since 2018.
Vestberg is remaining on the the board of directors until the 2026 annual meeting and serving as a special advisor through Oct. 4, 2026.
Bertolini said Thursday that Schulman is evaluating underlying cost structures and other aspects of the company to ensure its success.
“We believe that once we have that plan in place, we’ll have a good story,” Bertolini said. “The Street reacted early on that there’s going to be a price war; I think it’s less about price war than the value of what we’re offering to people through the product.”
Bertolini added that Schulman will be revealing his plan for turning around the company “sooner rather than later.”
“The board needed to act, and we acted,” Bertolini said.
-
Sports2 years agoStory injured on diving stop, exits Red Sox game
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports3 years agoButton battles heat exhaustion in NASCAR debut
-
Sports3 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment1 year agoHere are the best electric bikes you can buy at every price level in October 2024