Attorney General Bonta Exposes Amazon Price Fixing Scheme Driving Up Costs for Americans, Asks Court to Immediately Halt Illegal Conduct
oag.ca.gov
New evidence shows Amazon, its vendors, and competing retailers are price fixing, hiking up prices for consumer products and making Amazon richer and richer OAKLAND — California Attorney General Rob Bonta last night filed a request for a preliminary injunction in California’s existing case against Amazon for price fixing. Attorney General Bonta’s 2022 lawsuit alleged that the company stifled competition and caused increased prices across California through its anticompetitive policies in order to avoid competing on price with other retailers.

California Attorney General Rob Bonta last night filed a request for a preliminary injunction in California’s existing case against Amazon for price fixing. Attorney General Bonta’s 2022 lawsuit alleged that the company stifled competition and caused increased prices across California through its anticompetitive policies in order to avoid competing on price with other retailers. New evidence paints a clearer and more shocking picture. The motion for a preliminary injunction comes after a robust discovery process where California uncovered evidence of countless interactions in which Amazon, vendors, and Amazon’s competitors agree to increase and fix the prices of products on other retail websites to bolster Amazon’s profits. Time and again, across years and product categories, Amazon has reached out to its vendors and instructed them to increase retail prices on competitors’ websites, threatening dire consequences if vendors do not comply. Vendors, bullied by Amazon’s overwhelming bargaining leverage and fearing punishment, comply — agreeing to raise prices on competitors’ websites (often with the awareness and cooperation of the competing retailer), or to remove products from competing websites altogether. Amazon’s goal is to insulate itself from price competition by preventing lower retail prices in the market at the expense of American consumers who are already struggling with a crisis of affordability.

  • brucethemoose@lemmy.worldEnglish
    101·
    4 hours ago

    I’ve pointed out Valve doing basically the same thing; games can’t be priced lower than Steam on competing game storefronts (not Steam key resellers), or Valve will threaten to delist your game. Which would be essentially kill it. And they obviously do this to protect their chunky store fee.

    But personal loyalty goes a long way.

    I’m trying to reframe the perspective here, not drag into an argument about Valve. A whole lot of people feel good about finding “deals” on Amazon, about Amazon services that have helped them, and especially about the value and convenience the whole platform provides. It’s easy for Lemmy to hate on Amazon, but for the average person, I think this is a harder sell than most of us realize. They’ll dismiss it as the “market working” or California sensationalism or, more likely, just filter it out as noise in their feed, just like most PC gamers would when they read something bad about Valve.

    • NannerBanner@literature.cafeEnglish
      3·
      3 hours ago

      Valve’s not a good guy, but your attempt to “reframe the perspective” is lacking a major detail. If amazon were to simply GIVE you the product after you’ve paid the competitor then it’s quite a different story… yet that’s what steam will do.

    • TronBronson@lemmy.worldEnglish
      1·
      3 hours ago

      I boycott pretty much all the big corporations. I can’t really boycott Amazon because I am in a super rural part of the US and run a small business. Like most small businesses I purchase a lot of random doodads and thingamabobbers from china. Amazons monopoly on the US post office and their logistic network that gets bulk goods from china to my house is hard to live without. They fix more than prices, the whole economy is stacked in their favor. They basically won globalism and it was bad for the globe.

      Valves scope is much smaller and less destructive. They keep their customers due to loyalty and the investment into a steam library.