Amazon has used its market influence to persuade companies like Walmart to increase prices on its websites E-commerce giant It will not be undermined by its competitors, according to a filing unsealed Monday in an ongoing lawsuit by California’s attorney general.
Prosecutor Rob Bonta She filed a lawsuit against Amazon in San Francisco Superior Court in 2022 The company was accused of violating anti-monopoly and unfair competition laws in the country. The lawsuit is scheduled to go to trial next year, but Bonta is asking the judge to order Amazon to stop its practices immediately.
According to the filing, the alleged price-fixing scheme generally begins with the Seattle-based company asking sellers to fix or look at the prices of products on other websites and requesting that those prices be increased or face penalties such as promotion restrictions or even removal of the products from Amazon’s site.
For example, the lawsuit alleges that Amazon, the clothing company Levi Strauss & Company and Walmart Agreed to fix prices for khaki pants. Amazon sent the denim retailer links to pants that were priced lower on Walmart.com, saying it “could be resolved within the next few days.”
The next day, Levi Strauss reported that it had spoken to Walmart to increase prices again to $29.99, according to the filing.
“This is about protecting Californians from paying too much for everyday products, especially at a time when affordability seems so elusive,” Bonta, a Democrat, said Monday in a virtual news conference.
In a statement, an Amazon spokesperson dismissed Bonta’s suggestion as a “clear attempt to distract from the weakness of her case” with supposedly “new” evidence.
“Amazon is consistently identified as America’s lowest-priced online retailer, and we are proud of the low prices customers find when they shop at our store. Amazon looks forward to responding in court in a timely manner,” the statement read.
A Walmart spokesperson said in an email that it “does not comment on lawsuits in which we are not a party. We will always work hard on behalf of our customers to keep our prices low.”
Levi Strauss did not immediately respond to a request for comment.
Bonta said his office is focusing on Amazon because “illegal conduct stems from and arises from Amazon” but reserves the right to pursue other retailers and sellers in the future.
The alleged price-fixing includes a wide range of goods, including home decor, garden products and pet care, according to the filing.
The hearing for the request for a preliminary injunction will be held in July.