SAN FRANCISCO, Calif. (KNX) – California Attorney General Rob Bonta filed an antitrust lawsuit against Amazon Wednesday, claiming the company stifled competition and caused price increases throughout the state.
Bonta alleged the online retailer “requires merchants to enter into agreements that severely penalize them if their products are offered for a lower price off-Amazon” as a way to avoid competing with other online retailers.
One third-party seller was quoted in the 84-page lawsuit saying they kept prices for their products the same on every website that its sold because “if we sold a product on another website for a lower price than on Amazon, Amazon would suppress the ‘Add to Cart’ or ‘Buy Box’ button on the product’s Amazon page, causing lost sales.”
“Amazon coerces merchants into agreements that keep prices artificially high, knowing full well that they can't afford to say no,” Bonta said in a press release.
“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.”
Follow KNX News 97.1 FM
Twitter | Facebook | Instagram | TikTok
Related
Related
