District Attorney General Karl Racine (D) on Monday extended the antitrust lawsuit he filed against Amazon in May, accusing the e-commerce giant of shutting down first-party sellers in anti-competitive deals.
The amended complaint filed with the DC Superior Court of Justice alleges that Amazon has required wholesalers to guarantee that the company will make a minimal profit from buying and reselling goods.
“Amazon has continued to use its dominant position as an online marketplace to equip the system, leading to higher prices for consumers and less competition among online markets,” Racine said.
The initial lawsuit filed by Racine in May had focused on Amazon’s dealings with third-party vendors.
The complaint alleges that Amazon imposes excessive fees and does not allow sellers to offer their products elsewhere at lower costs, resulting in higher prices and fewer options for consumers.
The amended complaint adds alleged anti-competitive treatment to wholesalers, who sell products on Amazon.
Under the company’s minimum margin agreement, Racine’s office claims, Amazon essentially forces first-hand sellers to make up the difference if the e-commerce platform lowers prices to compete with other markets.
These agreements lead wholesalers to artificially increase their prices in online markets and make it difficult for this other platform to compete with Amazon.
The Hill has contacted Amazon for feedback on the amended complaint.