Connect with us

Hi, what are you looking for?

Economy

DC Attorney General Files Lawsuit Against Amazon on Antitrust Grounds

amazon

Washington, D.C. Attorney General Karl Racine (D) announced he’s suing Amazon on antitrust grounds. Racine claims the company’s practices have unfairly raised prices for consumers and suppressed innovation, reports CNBC.

An Amazon spokesperson responded, “The DC Attorney General has it exactly backward – sellers set their own prices for the products they offer in our store.” However, the lawsuit alleges Amazon has illegally maintained monopoly power through pricing contracts with third-party sellers.

Filed in D.C. Superior Court, the lawsuit seeks to end what Racine deems as illegal use of price agreements to edge out competition, and alleges Amazon has created contracts that create “an artificially high price floor across the online retail marketplace.”

Until 2019, Amazon included a clause in its business solutions agreement with third-party sellers a document referred to as a “price parity provision.” The provision prohibited companies from selling their products on a competitor’s online marketplace at a lower price than what it was listed for with Amazon.

Once antitrust scrutiny began, Amazon “quietly” removed the provision. According to the lawsuit, however, even after the provision was dropped, it added a nearly identical clause, its “fair pricing policy.” The clause allowed for Amazon to “impose sanctions” on a seller that offers their product for a lower price elsewhere online.

The lawsuit comes “months after federal and state enforcers filed antitrust lawsuits against Google and Facebook” writes CNBC, noting that “both of those lawsuits involved large coalitions of states banding together, but Tuesday’s action comes from Racine’s office alone.”

You May Also Like

Podcast

As Biden pursues his progressive agenda, Americans suffer from real problems.

Nation

“We’re coming to f***ing America…we’ll give them f***ng war.”

Politics

Joe Biden’s election reform legislation failed to pass in the Senate after a bipartisan majority opposed the radical push from Democrats to alter the...

Politics

Two Republican Senators, Ron Johnson and Chuck Grassley, are attempting to get to the bottom of the bombshell news