NY, August 22, 2024 (FFN) – In a significant legal development, the District of Columbia Court of Appeals has revived the antitrust lawsuit against Amazon.com Inc., ruling that the case plausibly claims the online retail giant’s pricing policies illegally stifle competition.
This decision overturns a previous ruling that had dismissed the lawsuit, which alleges that Amazon’s practices harm competition by imposing restrictions on suppliers and third-party sellers on its platform. The lawsuit, originally filed in May 2021, accuses Amazon of banning third-party sellers from offering lower prices on other platforms by refusing to promote their listings if they do so.
Amazon spokesperson Tim Doyle responded to the ruling by expressing the company’s disagreement, stating that Amazon looks forward to proving its policies are beneficial to consumers. Doyle emphasized that Amazon, like any retailer, avoids promoting deals that are not competitively priced.
On the other hand, D.C. Attorney General Brian Schwalb welcomed the court’s decision, affirming the district’s commitment to fighting what he describes as Amazon’s unfair and unlawful practices. Schwalb contends that these practices have led to higher prices for consumers and limited innovation and choice in the online retail market.
The revived lawsuit also claims that Amazon has agreements with wholesalers ensuring the company a minimum profit, which discourages price competition. If Amazon reduces its prices to compete with other sellers, wholesalers are required to pay the difference, thus disincentivizing them from lowering their prices.
The appeals court’s decision indicates that the initial dismissal of the case in May 2023 was premature, acknowledging that the attorney general’s claims merit further consideration in court. This ruling comes as Amazon is simultaneously defending itself against a similar lawsuit brought by the U.S. Federal Trade Commission and over a dozen states. The information in this report is based on an article from Reuters, published on August 22, 2024.
