Amazon Accused of Coercing Major Brands to Inflate Prices on Rival Retail Websites in Antitrust Lawsuit

Amazon Accused of Price-Fixing Scheme with Prominent Brands

California Attorney General Rob Bonta's 2022 antitrust lawsuit against Amazon has taken a new turn with the unsealing of court documents that allege the e-commerce giant coerced prominent brands, including Levi's Strauss and Hanes, into an alleged price-fixing scheme. According to the filing, Amazon instructed its vendors to "fix" retail prices on competitors' websites, threatening dire consequences if they did not comply.

The lawsuit, scheduled for trial in January next year, is one of several antitrust cases against Amazon. The retail giant captures about 40 cents of every dollar spent online in the US. The court filing details Amazon's campaign to ensure it had the best prices on a wide range of products, including Levi's khaki pants, Hanes apparel, bar stools, fertilizer, eye drops, portable generators, and guitar audio equipment.

Amazon's alleged price-fixing scheme involved contacting suppliers when it saw lower prices on competing websites, including Best Buy and Newegg Commerce. The company provided exact details of its competitors' prices and directly asked vendors to "look into" getting the competitors to increase their prices. Although there is no evidence of direct communication between Amazon and competing retailers, it did contact product suppliers and brands, which said rivals such as Walmart and Home Depot had agreed to update the prices of their products.

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The antitrust case is being closely watched as it may lead to a forced breakup of Amazon's retail business. In response to the court filing, Amazon spokesperson Mark Blafkin said the Attorney General's motion is a transparent attempt to distract from the weakness of its case. The next hearing is scheduled for July at the state's request, and the unsealed California motion stated that the evidence reveals conduct egregious enough for a court to temporarily block the behavior pending the outcome of the trial.