DC’s attorney general expands Amazon’s lawsuit

WASHINGTON, Sept. 13 (Reuters) – Washington, DC, has expanded its antitrust lawsuit against Amazon for challenging online retailers’ agreements with wholesalers and third-party sellers, the city’s attorney general’s office, Karl, said Monday Roots.

The city sued Amazon in May alleging that its requirements prohibited third-party sellers from selling elsewhere for less than Amazon. Amazon prices include rates, which are up to 40 percent of the total price. Read more

The new complaint includes allegations that Amazon has agreements with wholesalers that guarantee it a minimum profit. As a result, the complaint alleges that if Amazon lowers a price to compete with another online seller, the wholesaler will have to pay Amazon the difference between the price it sells and the agreed minimum. These payments are a disincentive for wholesalers to lower prices to compete, according to the complaint.

Amazon, which filed a motion to dismiss the lawsuit Friday, said the Washington, DC lawsuit was wrong.

“Sellers set their own prices for the products they offer in our store,” he said in a statement. “Amazon is proud of the fact that we offer low prices on a wider selection and, like any store, we reserve the right not to highlight offers to customers who are not competitively priced.”

Report by Diane Bartz; Edited by Howard Goller

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