On Wednesday, California filed a lawsuit against Amazon claiming that the company violated antitrust law by stifling price competition and raising prices for consumers.
"Amazon coerces merchants into agreements that keep prices artificially high, knowing full well that they can't afford to say no. 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."
- Rob Bonta, California Attorney General
Amazon's policies prevents merchants from offering products at lower prices on their own websites or at competitors' storefronts, according to California Attorney General Rob Bonta.
In response, Amazon said that consumers could see higher prices as the company has the "right not to highlight offers to customers that are not priced competitively," if the lawsuit succeeds.
Amazon is the world's largest online retailer and grew even larger during the pandemic, with over 200 million Prime members, paying for faster shipping and other benefits.
