Emails show Amazon colluding with other firms to raise prices, California authorities allege
Summary
California’s attorney general, Rob Bonta, released emails alleging that Amazon worked with other companies to raise prices on various products sold online. The emails suggest Amazon coordinated with vendors and retailers like Walmart and Chewy to raise prices together, which may limit competition and increase costs for shoppers.Key Facts
- Amazon employees allegedly coordinated with vendors to raise prices on products including pet treats, khaki pants, and eyedrops.
- In one example, Amazon raised dog treat prices and encouraged the pet treat manufacturer to get Chewy to raise its prices too.
- Amazon sent information to Levi’s about Walmart selling khaki pants cheaply and Levi’s then worked with Walmart to raise the price.
- After Walmart raised its price, Amazon increased its price for the same khaki pants.
- California’s attorney general claims this coordination is price fixing and harms consumers by raising prices unfairly.
- Amazon denies wrongdoing and says it offers the lowest prices to customers.
- Walmart, Levi’s, and Chewy are not accused in this lawsuit.
- The lawsuit started in 2022 and alleges Amazon pressures vendors to keep prices high on competing websites.
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