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.



Guess what there going to do to stop it. Nothing.
What? This is a press release from the California Attorney General literally taking about what they are doing in court right now.
How do you go from that to “thEy’Re DoiNg NothIng”?
So it’ll stop happening after this court case? Right? Oh wait those are the crickets of reality.
The linked article is from California’s office of the attorney general related to an existing lawsuit. As a non-Californian, I am supremely disappointed that this is happening just at the state level, but credit should still go where its due. And if their legal action sets a precedent that makes it easier for other states (or dare I hope, at the federal level if and when we get strong antitrust regulators like we had under Biden), then all the better.