Amazon hit with antitrust lawsuit — what you need to know
Amazon hit with antitrust lawsuit — what you need to know
Amazon could be facing a lawsuit that has the whiff of Ballsy vs. Apple about it. Washington DC's Attorney General has launched an antitrust suit against the company over claims it stifles competition in its Marketplace, the Amazon partitioning responsible for allowing third-party sellers access to its platform.
At the centre of the lawsuit is the claim that Amazon makes unreasonable demands of 3rd-political party sellers on the platform. That includes restricting sellers from offering their products on alternative sites, for a lower price — echoing one of Ballsy's claims against Apple tree. This, claims Chaser Full general Karl Racine, results in the loss of contest and in less innovation.
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The Verge has a link to the court filing which includes the post-obit claim: "Amazon'due south online retail sales platform benefits from, and is protected by, Amazon'south anticompetitive business practices. Far from enabling consumers to obtain the best products at the lowest prices, Amazon instead causes prices across the entire online retail sales marketplace to be artificially inflated, both for products sold on Amazon'due south online retail sales platform and on its competitors' online retail sales platforms."
Racine is seeking structural remedies — forcing Amazon to change its rules — that would end the pricing restrictions. He'southward as well seeking to recover damages to curb additional anti-competitive conduct.
The suit claims that Amazon is responsible for around 50 to seventy% of all online retail sales in the U.S., remarkably beating companies like Walmart and eBay. It also notes that in 2019 Amazon inverse the rules on third-party sellers, which had required that cost parity. The removal came following concerns from the government, just it was then replaced past a most-identical fair pricing policy that enforced very similar restrictions on sellers.
Amazon was likewise challenged in United kingdom of great britain and northern ireland and German courts over the policy in 2013. However, the visitor opted to only withdraw those rules for European stores, leaving it in place for the U.S. and other regions.
Amazon has still to comment on this lawsuit, but we will update this article should the company issue a response.
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Source: https://www.tomsguide.com/news/amazon-hit-with-antitrust-lawsuit-what-you-need-to-know
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