California has filed a lawsuit against Amazon, accusing it of influencing companies like Levi’s to push for higher prices at other retailers. On Monday, Attorney General Rob Bonta presented evidence of alleged price-fixing by Amazon, highlighting a preliminary injunction request made to the Supreme Court in February. The document, now largely unredacted, suggests Amazon’s collaboration with vendors to raise prices before Prime Day or remove discounted items. The scheme allegedly involves Amazon and competitors like Walmart, Target, Best Buy, Chewy, and Home Depot. The document outlines three strategies: agreeing on a price increase or product unavailability to match market price, influencing competitors to raise their prices through a vendor, and removing products from retailers offering lower prices to increase Amazon’s retail price. Instances include Amazon sending Levi’s examples of Walmart’s lower prices, prompting Levi’s to collaborate with Walmart to raise prices. Another allegation involves Amazon asking vendors like Scotts and Hanes to increase competitor prices, citing Prime Day as a reason for a temporary hike. Bonta states that Amazon coerced vendors to raise prices or remove products to maintain Amazon as the cheapest option, describing the evidence as unusually explicit in writing. Amazon has not yet commented on the accusations.
How Amazon’s Alleged Price Fixing Supposedly Increased Prices Everywhere
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