A Washington DC appeals court on Thursday revived the district’s lawsuit against Amazon, saying it is plausible that the online retailer’s pricing policies illegally stifle competition.
The U.S. District of Columbia Court of Appeals has overturned a ruling that had dismissed the lawsuit, which accuses Amazon of harming competition by restricting its suppliers and third-party sellers on Amazon.
Amazon is now seeking to dismiss a separate case involving the U.S. Federal Trade Commission and more than a dozen states pursuing similar lawsuits.
Amazon spokesman Tim Doyle said the company disagrees with the appeals court ruling and hopes to show that its policies benefit consumers.
“Just like any store owner who wouldn’t want to promote a bad deal to their customers, we don’t highlight or promote deals that aren’t competitively priced,” he said.
District of Columbia Attorney General Brian Schwalb welcomed the court’s decision in a statement. “We will continue to fight to end Amazon’s unfair and unlawful practices that have driven up prices for District consumers and stifled innovation and choice across online retail,” he said.
The District of Columbia sued Amazon in May 2021, alleging that the online retailer effectively prohibits third-party sellers from offering products for less elsewhere by refusing to feature their ads if they do so.
The suit also claims that Amazon has agreements with wholesalers that guarantee it a minimum profit. As a result, the suit alleges, if Amazon lowers a price to compete with another online seller, the wholesaler must pay Amazon the difference between the price it sells for and the agreed-upon minimum. According to the suit, these payments discourage wholesalers from lowering prices to compete.
The District of Columbia appeals court said Thursday that the judge who dismissed the case in May 2023 set the bar too high, and that the attorney general had a plausible allegation that the practices harmed competition in the online retail market.
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– 2024-08-27 00:41:54
