There is an appeals court antitrust lawsuit against Amazon by the Washington Attorney General more than three years ago. The online retailer now faces allegations that it illegally raised prices for consumers.
Initially, a lawsuit was filed and cited Amazon’s experiences with third-party sellers on its platform. In particular, it called for a provision in the company’s contracts with third-party sellers that would allow it to penalize businesses that offer their products at lower prices on non-Amazon platforms. Karl Racine, the AG at the time, said the agreements allowed the company to “impose an artificially high price level in the online retail market.” After Racine case includes Amazon’s pricing tactics for wholesalers.
Amazon disputed these claims and the case was dismissed in 2022. But an appeals court has now overturned that decision. “Viewed as a whole, the District’s allegations regarding Amazon’s market share and maintenance of market power through the agreements at issue convincingly show that Amazon either has monopoly power over online marketplaces or is “dangerously likely to achieve monopoly power.”” the judge wrote.
The reversal adds to Amazon’s antitrust problems. The company also faces from the Federal Trade Commission and more than a dozen states. The UK’s antitrust regulator has also opened up centered around the company’s $4 billion investment in Anthropic.
In a statement, current D.C. AG Brian Schwalb noted that the district was “the first jurisdiction to take antitrust enforcement action” against the company. “Now our work will move forward and we will continue to fight to stop Amazon’s unfair and illegal practices that drive up prices for District consumers and stifle innovation and choice in online retail.”
Amazon did not immediately respond to a request for comment.
