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.

  • TrackinDaKraken@lemmy.world
    English
    176·
    7 hours ago

    You can stop buying from Amazon whenever you choose to. There are online alternatives to every product they sell. You don’t need to be part of it. Whatever excuse you give is wrong.

    • Zombie-Mantis@lemmy.worldEnglish
      12·
      5 hours ago

      Sure, but don’t deflect the responsibility to fix the economy onto the individual, this is a problem of monopoly and should be treated as such.

    • GaumBeist@lemmy.mlEnglish
      7·
      6 hours ago

      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.

      Yes, buying from alternative websites is the bare minimum and the bar is so low it’s underground. But that’s beside the point: Amazon is price fixing across the internet.

      • SaveTheTuaHawk@lemmy.caEnglish
        2·
        6 hours ago

        And that higher price is because you cannot charge less than Amazon, but to list on Amazon you have to pay a search priority fee that has balloned from 10% to over 40%.

        Thats why it’s better to skip the first pages of search returns, or just find the exact same thing on AliExpress for 50% less.

    • Nightsoul@lemmy.worldEnglish
      4·
      5 hours ago

      I’ve tried, but some companies only sell their products on Amazon, even when going to the products website, they link back to Amazon when you click the Buy Now button.

    • brianary@lemmy.zipEnglish
      3·
      6 hours ago

      I buy direct from the manufacturer whenever I can.

      The prices outside of Amazon will be higher though, that’s the reason for this enforcement, the “Amazon tax”. Cory Doctorow has been talking about it for a while. I’m glad to see someone that can do something heard it.

      Finding stuff outside of Amazon isn’t easy, though. Search engines barely show results for anyone outside Amazon, Walmart, and ebay. Too often I’ll find a retailer for a while only for Amazon to buy it later or otherwise destroy them (I miss Woot and Jet and Fictionwise and Bookpool, &c).

      • lobut@lemmy.caEnglish
        2·
        6 hours ago

        Yeah, I cancelled my subscription last year and I thought I’d missed out because it was on Amazon. When I searched other sites I actually saved money in a few cases. Also, turns out I buy less now as well which is an overall win.