The e-commerce giant used the algorithm, which it stopped using in 2019 for unknown reasons, to test how much it could raise prices and have competitors follow suit, sources told The Wall Street Journal. It also helped Amazon match promotions from other retailers, which competitors would then do as well and find themselves stuck at the lower price after the original retailer’s sale ended. (The Wall Street Journal)

Talking point: We first learned about Project Nessie in the U.S. Federal Trade Commission’s lawsuit against Amazon, filed last week, though many portions relating to it were redacted. A source told The Journal that Amazon generated more than US$1 billion in revenue by using the algorithm. The FTC has accused Amazon of monopolistic, anticompetitive practices that prevent retailers from pricing their items lower than they see them on Amazon. The FTC declined The Journal’s request for comment on the redacted material, but a spokesperson called on Amazon to remove the redactions.