California Attorney General Rob Bonta has accused Amazon of using its market dominance to pressure retailers and vendors into raising prices on competing platforms, according to newly unsealed court filings. The allegations are part of an ongoing antitrust lawsuit filed in 2022, which is set to go to trial next year. Bonta is seeking a preliminary injunction to halt Amazon's alleged practices immediately.
The filings claim Amazon demanded that vendors, including Levi Strauss & Co., Hanes, and Allergan, monitor and adjust prices on rival sites like Walmart and Target. If vendors refused, Amazon allegedly threatened penalties such as reduced promotions or removal from its platform. For example, Amazon reportedly pressured Levi Strauss to convince Walmart to raise the price of khaki pants from $25.47 to $29.99, which Walmart subsequently did. Similar incidents involving Hanes and Allergan were also detailed in the filings.
Bonta argues that Amazon's actions violate California's antitrust and unfair competition laws, artificially inflating prices for consumers. “This is about protecting Californians from paying more than they should for everyday products,” Bonta said in a statement. The lawsuit alleges that Amazon's practices stifle competition and harm consumers by keeping prices artificially high.
Amazon has denied the allegations, calling Bonta's motion a “transparent attempt to distract from the weakness of its case.” The company maintains that it offers the lowest prices online and will respond in court at the appropriate time. Walmart, Levi Strauss, Hanes, and Allergan have not publicly commented on the allegations.
The case highlights broader concerns about Amazon's market power and its impact on pricing across the retail industry. If the court grants Bonta's request for a preliminary injunction, Amazon could be forced to halt these practices before the trial begins.