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.

  • FlyingSpaceCow@lemmy.ca
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    5 hours ago

    That’s like saying the simple solution to global warming is for people to not burn fossil fuels. It ignores the conditions that led to this becoming a problem in the first place; and it ignores the power of entrenched industry to protect their own interest.

    What we need is political reform. so that the bodies that are supposed regulate industry and serve the public are empowered to make the necessary reforms. Lina Kahn was doing just that (before Trump got elected again in 2024)

    I’m not trying to diminish the importance and role of personal accountability and individual action, but as a solution to affect meaningful change it falls well short.