• 📅 September 14, 2022

Amazon
Photo credit | Amazon


California's attorney general says Amazon's contracts make it difficult for other e-commerce platforms to participate fairly. Reports say California has filed an antitrust suit against Amazon on Wednesday, 14th of september, based on allegations that Amazon promotes its prices by compelling sellers to sign contracts that inhibit the free market.

Amazon is accused of maintaining practices which binds merchants to an agreement, that mandates merchants to keep prices high on other e-commerce platforms such as Best Buy, eBay and Walmart among the likes.

Attorney General Rob Bonta mentioned in a statement, that agreements of this nature constitute a violation of the state's Unfair Competition Law and Cartwright Act.

"For years, California consumers have paid more for their online purchases because of Amazon's anticompetitive contracting practices," he pointed. "With other e-commerce platforms unable to compete on price, consumers turn to Amazon as a one-stop shop for all their purchases. This perpetuates Amazon's market dominance, allowing the company to make increasingly untenable demands on its merchants and costing consumers more at checkout across California."

Amazon has 160 million Prime members in the US and about 25 million customers in the state of California, (data drawn from the California Attorney General's office). Amazon also owns multiple offices in Southern California, holding sway to large swaths of commercial space in San Diego, Irvine and Santa Monica.