California has filed an antitrust lawsuit against Amazon, alleging that the company violated state competition law with its pricing rules.
Engadget reports that California has filed an antitrust lawsuit alleging that Amazon violated both Cartwright Act and state competition law with its pricing rules. Attorney General Rob Bonta accused the e-commerce giant of stifling competition by preventing sellers from offering their products at lower prices on other sites.
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If third-party sellers offer their products at lower prices on other platforms, they risk losing buy buttons, featured listings, and even access to Amazon’s marketplace. If the lawsuit is successful, Amazon will be barred from participating in any contracts deemed anticompetitive and must inform sellers that they can lower prices on other platforms.
Amazon will also have to pay compensation, refund “illegal proceeds,” and appoint a court-approved guard. Amazon said in a statement that the situation in the state of California is “just the opposite”. Amazon claims that third-party sellers still control pricing, and the inclusion of the “Buy Box” domain shows the deal is competitive. Amazon also claimed that the lawsuit would lead to higher prices.
Below is Amazon’s full statement on its latest antitrust lawsuit:
“Just as the District of Columbia attorney general’s complaint was dismissed by the courts, the California attorney general is the exact opposite. Sellers set their own prices for the products they offer in our store. Amazon is proud to offer the lowest prices on the widest range of products, and like any other store, we reserve the right not to highlight uncompetitive offers to customers. The relief AG seeks will force Amazon to offer higher prices to customers, which, ironically, goes against the primary goals of antitrust law. We hope a California court will come to the same conclusion as a DC court and quickly dismiss this case.”
Amazon has faced further scrutiny of its apps in recent months. Breitbart News recently reported that more than two dozen groups critical of Amazon’s anti-competitive and invasive surveillance practices have urged the FTC to block the purchase of iRobot. A coalition that includes Fight for the Future, the Electronic Frontier Foundation, the International Brotherhood of Teamsters, and Public Citizen recently wrote to the FTC about a $1.7 billion deal with iRobot.
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Source: Breitbart
