California Attorney General Rob Bonta last night filed a request for a preliminary injunction in California’s existing case against Amazon for price fixing. Attorney General Bonta’s 2022 lawsuit alleged that the company stifled competition and caused increased prices across California through its anticompetitive policies in order to avoid competing on price with other retailers. New evidence paints a clearer and more shocking picture. The motion for a preliminary injunction comes after a robust discovery process where California uncovered evidence of countless interactions in which Amazon, vendors, and Amazon’s competitors agree to increase and fix the prices of products on other retail websites to bolster Amazon’s profits. Time and again, across years and product categories, Amazon has reached out to its vendors and instructed them to increase retail prices on competitors’ websites, threatening dire consequences if vendors do not comply. Vendors, bullied by Amazon’s overwhelming bargaining leverage and fearing punishment, comply — agreeing to raise prices on competitors’ websites (often with the awareness and cooperation of the competing retailer), or to remove products from competing websites altogether. Amazon’s goal is to insulate itself from price competition by preventing lower retail prices in the market at the expense of American consumers who are already struggling with a crisis of affordability.

  • zewm@lemmy.world
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    7 hours ago

    That’s easy to take a noble stance when you can afford it. A lot of people rely on the cheapest prices just to get by.

    • krashmo@lemmy.world
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      7 hours ago

      Amazon isn’t the cheapest option in many cases. What you’re saying makes sense if people shop around, the problem is that they generally don’t.

      • innermachine@lemmy.world
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        6 hours ago

        Even if I add shipping costs, Amazon is typically more expensive. I order my car parts from rock auto and have NEVER found Amazon to be cheaper even after adding shipping costs. They were cheap maybe a decade ago when they were trying to fold everybody else but they got enough fools by the short and curlies to start jacking prices up until people start looking elsewhere. Same formula as Wal Mart, it’s a proven good practice for big corps to kill local and small businesses.

      • CheeseNoodle@lemmy.world
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        5 hours ago

        Dependso n the area, in remote areas amazon can be WAY cheaper so long as you pass the free shipping threshold even if the items themselves are more expensive.

        • garretble@lemmy.world
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          3 hours ago

          I feel like that’s any retailer now. Most places online offer free shipping if you hit some threshold.