California to sue Amazon for anti-competition practices
SACRAMENTO, Calif. (KION-TV)- California Attorney General Rob Bonta announced Wednesday California's plan to sue Amazon for "blocking price competition."
He accuses the company of coercing prices and leaving consumers with no real alternative.
#BREAKING: We’re suing @Amazon for blocking price competition.
— Rob Bonta (@AGRobBonta) September 14, 2022
Amazon coerces merchants into deals that keep prices artificially high, knowing full well they have no real alternative.
We won't let Amazon bend the market to its will at the expense of consumers and the economy.
“For years, California consumers have paid more for their online purchases because of Amazon's anticompetitive contracting practices,” said Attorney General Bonta. “Amazon coerces merchants into agreements that keep prices artificially high, knowing full well that they can't afford to say no. With other e-commerce platforms unable to compete on price, consumers turn to Amazon as a one-stop shop for all their purchases. This perpetuates Amazon's market dominance, allowing the company to make increasingly untenable demands on its merchants and costing consumers more at checkout across California. The reality is that many of online products would be cheaper if market forces were left unconstrained. With today's lawsuit, we're fighting back. We won't allow Amazon to bend the market to its will at the expense of California consumers, small business owners, and a fair and competitive economy.”
The Attorney General’s lawsuit seeks an order from the San Francisco Superior Court that stops Amazon's anticompetitive behavior and recovers the damages to California consumers and the California economy:
- Prohibit Amazon from entering into and enforcing its anticompetitive contracts that harm price competition;
- Require Amazon to affirmatively notify vendors that it does not require sellers to offer prices on par with off-Amazon prices;
- Appoint a Court-approved monitor to ensure Amazon’s compliance with the Court’s order;
- Order damages to compensate for the harms to consumers through increased prices; and
- Order Amazon to return its ill-gotten gains and pay penalties to deter other companies contemplating similar actions.
For the complete statement, click here.
