California Seeks to Stop Amazon from Inflating Prices in Antitrust Lawsuit
By Jonathan Stempel
Feb 24 (Reuters) – California asked a state judge on Tuesday to stop Amazon.com from inflating prices for consumers through an alleged campaign to bully merchants not to sell goods more cheaply elsewhere.
California’s attorney general, Rob Bonta, has sought a preliminary injunction in his ongoing antitrust lawsuit against Amazon. The lawsuit, which has been ongoing for 3-1/2 years, aims to not only stop Amazon from inflating prices but also to recoup any ill-gotten profits.
Bonta alleges that Amazon’s tactics are designed to prevent lower retail prices in the market, ultimately insulating the company from price competition. He claims that Amazon dictates prices to vendors to maintain its own profitability, creating a scenario where consumers pay higher prices due to the lack of competition.
The state has uncovered numerous instances where Amazon, along with its rivals and merchants, have engaged in agreements to fix prices and prevent undercutting on other platforms such as eBay, Target, and Walmart.
Amazon has refuted the claims, calling the motion a distraction and stating that the evidence presented is not new. The company asserts that its agreements with merchants are procompetitive, common in the industry, and ultimately benefit consumers by offering a wider product selection and competitive prices.
Bonta alleges that Amazon and its rivals, in collaboration with merchants, would agree to raise prices or make products temporarily unavailable to eliminate the need for price-matching. Merchants who resisted Amazon’s demands would face consequences such as being cut off or denied access to the “Buy Box,” a crucial feature on Amazon’s website that drives the majority of sales.
The proposed injunction, if granted, would halt Amazon’s alleged anticompetitive behavior while the case is ongoing, with a monitor overseeing the company’s compliance.
Amazon maintains that its actions are legal and in the best interest of consumers, citing benefits such as appropriate product stocking and competitive prices.
The trial for the antitrust lawsuit is scheduled for January 2027.
(Reporting by Jonathan Stempel in New York;Editing by Nick Zieminski)
