California Sues Amazon Alleging Antitrust Violations, Blocking Price Competition

California Attorney General Rob Bonta announced a lawsuit against Amazon alleging that the company stifled competition and caused increased prices across California through anticompetitive contracting practices in violation of California’s Unfair Competition Law and Cartwright Act. In order to avoid competing on prices with other online e-commerce sites, Amazon requires merchants to enter into agreements that severely penalize them if their products are offered for a lower price off-Amazon. In the lawsuit, Attorney General Bonta alleges that these agreements thwart the ability of other online retailers to compete, contributing to Amazon's dominance in the online retail marketplace and harming merchants and consumers through inflated fees and higher prices. The Attorney General’s lawsuit seeks an order from the San Francisco Superior Court that stops Amazon's anticompetitive behavior and recovers the damages to California consumers and the California economy.