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California accuses Amazon of pressuring brands to raise rivals’ prices

Amazon is facing fresh antitrust scrutiny after Rob Bonta alleged the company pressured brands to increase prices at competing retailers rather than allow them to undercut Amazon.

The claims were detailed in a newly unsealed court filing tied to a lawsuit first launched in 2022, with trial scheduled for January 2027.

© Tatiana Golmer | Dreamstime

According to the filing, Amazon allegedly contacted vendors selling through its marketplace and urged them to address lower prices found on rival platforms. Prosecutors claim these requests were backed by threats such as reduced promotion, financial penalties or removal of products from Amazon listings.

Examples cited reportedly involve Walmart, Home Depot, Chewy and Levi Strauss & Co..

In one instance, California alleges Amazon highlighted cheaper khaki trousers sold on Walmart's website to Levi's, after which Walmart's price rose and Amazon later increased its own price.

Rob Bonta said the conduct effectively raised prices for consumers by limiting competitive discounting. He is seeking restrictions preventing Amazon from discussing rivals' prices with vendors, alongside appointment of an independent monitor.

Amazon has denied wrongdoing, describing the case as an attempt to distract from weak claims, and said it would contest the allegations in court.

If upheld, the case could have major implications for global e-commerce, particularly around how dominant marketplaces shape pricing behaviour beyond their own platforms. It may also intensify regulatory pressure on retail technology giants in the US and abroad.

Source: www.retailgazette.co.uk

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