An antitrust lawsuit against the e-commerce giant was recently filed by California. The company was accused of violating the cartwright and state competition law with its rules and prices. According to information from the attorney general, Rob Bonta, Amazon would be, in a way, limiting competition by making it impossible for sellers to offer lower prices on other sites.
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If any of the employees do this by chance, they run the risk of losing their “important buttons”, such as “buy now” and “add to cart” on several products in the stores. These two buttons are some of the top ways to drive sales for businesses that sell through Amazon.
To lose them is to have your business damaged immediately.
There is no real competition
This is one of the predominant factors for sellers to complain, since – most of the time – they end up refusing proposals. to offer their products on other sites with lower prices, other than the Amazon site, even when the cost of advertising elsewhere is lower.
Since Amazon is a large and well-known online retailer worldwide, sellers end up giving preference for her to raise her prices on other platforms instead of taking a risk and ending up losing sales for complete. This was identified in the complaint made.
It was also mentioned that some sellers would be competitors and industry consultants.
“Without basic price competition, without different online sites trying to outdo each other with lower prices, prices are artificially stabilized at higher levels than they would be in a competitive market. complaint.
“If you think about Californians paying a little more for every product they buy online over the course of a year, let alone a decade, which is what's going on. at issue here, the collective magnitude of the damage here is far-reaching,” declared Rob Bonta during a press conference where he was announcing this case.
Consequences of the process
If the process turns out to be accepted, it will be preventing any contract that could be considered anti-competitive and it will also be notifying sellers that they are free to lower prices on other platforms and websites as well. In addition, Amazon must also pay damages, return winnings that were illegally obtained and appoint a court-approved supervisor.
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