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Washington DC has sued Amazon for allegedly violating competition laws in the neighborhood by illegally linking merchants to restrictive sales rules.
District Attorney General Karl Racine has complained that the eCommerce giant charges third-party retailers 40 percent of the price of a product to sell through its website, and then demands that others charge less. platforms.
If the company already has them has been charged Because of the treatment it gives to European traders who use its platform to sell goods in the EU, but this is the first time it has had similar allegations in the US.
At one time, several technology companies accused them of behaving against competitors. Racine is among dozens of lawyers who are pursuing antitrust cases against Facebook and Google.
The new lawsuit, launched Tuesday, said Amazon’s “restrictive contracts” artificially inflate consumer prices.
“Amazon wins because it controls prices in the online retail market, putting it ahead of everyone else,” he said. “As a result, Amazon is increasing its main stronghold in the market and illegally reducing its ability for other platforms to compete for market share.”
Amazon said in 2019 that it would no longer ban third-party sellers from selling their goods more cheaply elsewhere, following criticism from senior Democrats such as Massachusetts Sen. Elizabeth Warren. Racine’s lawsuit accuses the company of continuing in practice, however, through a “fair pricing policy,” which allows it to ban traders who offer lower prices elsewhere.
“DC Attorney General is backtracking. Sellers are setting up their stores for the products they offer in our store,” the company said in a statement. “Amazon is proud to offer the lowest prices in the widest selection, and like any store, we have a right not to highlight offers for customers that are not competitively priced.”
The case filed by Racin applies only to violations of Columbia District rules. But it will be seen as a test to see if other states and federal agencies can build their cases against Amazon.
The DC case against Amazon has advanced arguments written by congressional Democrats in a report last year Amazon was found guilty of using its dominance to improperly treat third-party sellers and help improve their data on competing products.
Currently, the president of the National Association of Attorneys General is allegedly being considered by U.S. President Joe Biden to chair the Federal Trade Commission Racine.
The FTC is responsible for investigating Amazon’s competitive practices under an agreement with the Justice Department two years ago, but the commission has not said whether it is actively pursuing the case against the company. Biden has appointed Lina Khan, one of the company’s most outspoken critics, as commissioner.
Asked about the reports the RTC has chosen to lead the FTC, Racin said, “The issue of the FTC is something that the president will decide.”
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