California says Amazon pressured retailers to boost prices on their websites to not undercut it
Amazon has used its market power to get companies like Walmart to raise prices on their websites. e-commerce giant It won’t be overturned by rivals, according to a filing sealed Monday in an ongoing case by California’s attorney general.
Attorney General Rob Bonta A lawsuit was filed against Amazon in the San Francisco Supreme Court in 2022 accuses the company of violating the state’s antitrust and unfair competition laws. The case is scheduled to go to trial next year, but Bonta wants the judge to order Amazon to cease operations immediately.
According to the filing, the alleged price-fixing scheme typically begins with the Seattle-based company demanding that sellers fix or review prices for products on other websites and demand that those prices be increased, or face penalties such as promotional restrictions or even removal of products from Amazon’s site.
For example, in the application Amazon, clothing company Levi Strauss & Co. And Walmart Agreed to fix prices of khaki trousers. Amazon posted the denim retailer’s links to lower-priced pants on Walmart.com, saying it “hopefully these issues can be resolved within the next few days.”
The next day, Levi Strauss said it met with Walmart to raise prices back to $29.99, according to the filing.
“This is about protecting Californians from paying more than they should for everyday items, especially at a time when affordability is increasingly out of reach,” Bonta, a Democrat, said at a virtual news conference Monday.
An Amazon spokesperson rejected Bonta’s request in a statement, calling it “a transparent attempt to distract from the weakness of the case with so-called ‘new’ evidence.”
“Amazon is consistently identified as America’s lowest-priced online retailer, and we are proud of the low prices customers find when shopping at our store. Amazon looks forward to responding in court at the appropriate time,” the statement said.
A Walmart spokesperson said in an email that it “will not comment on a lawsuit in which we are not a party. We will always work hard on behalf of our customers to keep our prices low.”
Levi Strauss did not immediately respond to a request for comment.
Bonta said his office is focusing on Amazon because “the illegal conduct originates and originates from Amazon,” but reserves the right to go after other retailers and sellers in the future.
According to the filing, the alleged price fixing covers a wide range of products, including home decor, gardening products and pet care.
The hearing on the preliminary injunction request is in July.
