Amazon still can’t avoid lawsuits over third-party prices. The New York Times reports California has filed an antitrust lawsuit accusing Amazon of violating both the Cartwright Act and state competition law through its pricing rules. The internet giant is stifling competition by preventing sellers from offering lower prices on other sites, according to Attorney General Rob Bonta. If they defy Amazon, they risk losing buy buttons, prominent listings or even basic access to Amazon’s marketplace.
If successful, the lawsuit would bar any contracts deemed anti-competitive and notify sellers that they’re free to reduce prices elsewhere. Amazon would also have to pay damages, return “ill-gotten gains” and appoint a court-approved overseer.
In a statement, an Amazon spokesperson said California had the situation “exactly backwards.” Third-parties still have control over prices, Amazon claimed, and inclusion in the “Buy Box” space supposedly shows that a deal is truly competitive. It further contended that the suit would raise prices. You can read the full statement below.
The case is similar to a District of Columbia lawsuit. The region’s Superior Court dismissed that case in March citing a lack of evidence, but Attorney General Karl Racine is appealing the decision.
Amazon is facing increasing government scrutiny of its practices. The Federal Trade Commission has been investigating issues ranging from major acquisitions through to withheld driver tips, while EU pressure prompted Amazon to revise its seller program and improve third parties’ chances of competing with direct sales. The tech firm has balked at these moves, and went so far as to both demand the FTC chair’s recusal as well as fight agency requests to interview executives. Don’t expect either side to back down any time soon, in other words.
For more such interesting article like this, app/softwares, games, Gadget Reviews, comparisons, troubleshooting guides, listicles, and tips & tricks related to Windows, Android, iOS, and macOS, follow us on Facebook, Instagram, Twitter, YouTube, and Pinterest.
Advertising statement: The external jump links (including but not limited to hyperlinks, QR codes, passwords, etc.) contained in the article are used to convey more information and save selection time. The results are for reference only. All Naijatechnews articles include this statement.