California sues Amazon for allegedly thwarting lower prices

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California sues Amazon for allegedly thwarting lower prices
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California filed a lawsuit Wednesday accusing Amazon of using its market influence to prevent merchants from offering buyers better deals elsewhere online, in violation of state antitrust law.

Amazon pressures merchants not to list items at lower prices on other websites, which hurts sellers and consumers, California Attorney General Rob Bonta said in the lawsuit.

"The relief the AG seeks would force Amazon to feature higher prices to customers, oddly going against core objectives of antitrust law."Amazon is such a dominant e-commerce site that merchants feel they have little choice when it comes to agreeing to the titan's selling conditions, Bonta's lawsuit argued.

"Amazon takes pride in the fact that we offer low prices across the broadest selection, and like any store we reserve the right not to highlight offers to customers that are not priced competitively," the spokesperson said, noting that sellers set their own prices for products at its website. "This, if anything, allows Amazon to protect its consumers by guaranteeing they are getting one of the best deals," Saunders said.

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