California Sues Amazon For Unfair Competition | Abroad

To avoid price competition with other online ecommerce companies, Amazon requires merchants to enter into agreements. They are severely punished if they offer their products at a lower price outside of Amazon. The practice not only reduces other companies’ ability to compete, but also further increases Amazon’s dominance in the e-commerce market, the complaint says.

“California consumers have been paying more for their online purchases for years due to Amazon’s anti-competitive contractual practices,” the attorney general said. “Many of the products purchased online would be cheaper if competition were not limited.”

Amazon is the largest online retailer in the United States with over 160 million Prime members nationwide. Of these, about 25 million come from California alone.

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