California is suing Amazon, accusing the company of violating the state's antitrust laws by stifling competition and engaging in practices that push sellers to maintain higher prices on products on other sites.
The 84-page lawsuit filed Wednesday in San Francisco Superior Court mirrors another complaint filed last year by the District of Columbia, which was dismissed by a district judge earlier this year and is now going through an appeals process.
The suit maintains merchants that do not comply with the policy could have their products stripped from prominent listings on Amazon and face other sanctions such as suspensions or terminations of their accounts. It alleges Amazon's policy essentially forces merchants to list higher prices on other sites, helping the retail giant maintain its e-commerce dominance.
"Amazon coerces merchants into agreements that keep prices artificially high, knowing full-well that they can't afford to say no," Bonta said in a statement.
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