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.

  • WesternInfidels@feddit.online
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    1 month ago

    There was a time when Amazon was not full of scummy rip-off products, when it was not playing games with prices, when it was not a cloud-computing powerhouse, and you know what happened?

    That’s right, they crushed their adversaries (retail shopping) and earned billions in profits. They won.

    But somehow that’s not enough winning, there isn’t enough winning until all the value has been vacuumed up from the world.

    • pomegranatefern@sh.itjust.works
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      1 month ago

      The other commenters here are right about Amazon’s initial methods, but I’m also going to highly recommend Cory Doctorow’s Enshittification for a detailed explanation of how this happens (including a breakdown on Amazon specifically) and what to do about it.

    • Entropy_Pyre@lemmy.ca
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      1 month ago

      To quote a favorite singer of mine,

      You could fill a man with gold, and still have room for greed.