Amazon is accused of violating antitrust and unfair competition laws by stifling competition and engaging in practices that push sellers to maintain higher prices on products on other sites.
NEW YORK — California is suing Amazon, accusing the company of violating the state's antitrust and unfair competition laws by stifling competition and engaging in practices that push sellers to maintain higher prices on products on other sites.
In the lawsuit, California Attorney General Rob Bonta’s office said Seattle-based Amazon used contract provisions to effectively bar third-party sellers and wholesale suppliers from offering lower prices for products on non-Amazon sites, including on their own websites. That, in turn, harms the ability of other retailers to compete.
The company has said in the past that sellers set their own prices on the platform. It has also said it has the right to avoid highlighting products that are not priced competitively. In a statement sent Wednesday, Amazon reiterated those points and said Bonta has it “exactly backwards.” During a news conference on Wednesday, Bonta said some vendors have expressed they would offer lower prices on other sites with lower seller fees, but don't do so to avoid punishment from Amazon.
The tech industry's allies also slammed the lawsuit. Adam Kovacevich, CEO of the industry trade group Chamber of Progress, which receives funding from Amazon and other tech companies, said the case would force Amazon to raise prices.
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