The suit claims Amazon bars sellers from offering lower prices for products on non-Amazon sites, including on the sellers’ own websites.
NEW YORK — California is suing Amazon, accusing the company of violating the state’s antitrust and unfair competition laws by stifling competition and engaging in practices that push sellers to maintain higher prices on products on other sites. 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.
During a news conference on Wednesday, Bonta said some vendors have expressed they would offer lower prices on other sites with lower seller fees, but don’t do so to avoid punishment from Amazon. The tech industry’s allies quickly slammed the lawsuit. Adam Kovacevich, CEO of the industry trade group Chamber of Progress, which receives funding from Amazon and other tech companies, said the case would force Amazon to raise prices.
Despite that defense, Amazon’s market power has been a subject of scrutiny from lawmakers and advocacy groups calling for stricter antitrust regulations. Earlier this year, congressional lawmakers urged the Justice Department to investigate if the company collects data on sellers to develop competing products and offer them more prominently on its site. Critics have also lambasted the imposed on sellers, which makes it more difficult for merchants to enter the market.
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