Amazon is accused of 'unreasonably raising market prices'
On May 25, 2021, Attorney General Karl Racine of Washington, DC announced that he had sued Amazon for antitrust reasons. 'Amazon has unreasonably raised prices and curtailed innovation,' Racine claims.
AG Racine Files Antitrust Lawsuit Against Amazon to End its Illegal Control of Prices Across Online Retail Market
Amazon sued by DC attorney general on antitrust grounds
Amazon explicitly prohibits third-party sellers from selling products on non-Amazon platforms at lower prices than Amazon, based on terms and policies. Also, commissions paid by third-party sellers to Amazon can be up to 40% of the selling price, forcing sellers to set prices that include commissions, resulting in higher overall market prices. It is said that it has been done.
The Attorney General's office said, 'This provision, known as'most favored nation', imposes artificially high minimum fees on the entire online retail market, allowing Amazon to build and maintain its monopoly. Most favored nation treatment harms consumers and retailers and curbs competition, choice and innovation. '
'Amazon is estimated to have a 50-70% share of the online retail market, with over 2 million sellers relying on Amazon. We end Amazon's illegal pricing controls,' Racine said. We need to. '
An Amazon spokeswoman was sued and said, 'We are proud of the fact that sellers can set their own prices for products they sell on Amazon, and Amazon offers low prices in a wide range of options. The relief sought by the Secretary of Justice will force Amazon to offer higher prices to its customers, 'the statement said.
It's not the first time Amazon has been sued for most favored nation treatment, and on January 14, 2021, 'we secretly signed contracts with five major publishers and manipulated the market to raise the price of ebooks. I am receiving a class action from a law firm in Seattle.
Amazon is accused of 'collusion with a major publisher to raise the price of ebooks' --GIGAZINE
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