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.



They need to make (most favoured nation status) illegal. Sellers should be free to set the price they want on any platform. If a seller can offer it cheaper on their own site, or on another platform, they should be allowed to.
I’m honestly surprised they never got hit for this. It’s one thing for our antitrust system to be shit, but to look at a policy that explicitly states “you have to give us the best possible price otherwise we will kick you off our platform and take away the majority of your possible customers” isn’t even burying the lead at all.
Why is “(most favored nation status)” in parentheses?