To avoid price competition with other online ecommerce companies, Amazon requires merchants to enter into agreements. They are severely punished if they offer their products at a lower price outside of Amazon. The practice not only reduces other companies’ ability to compete, but also further increases Amazon’s dominance in the e-commerce market, the complaint says.
–
“California consumers have been paying more for their online purchases for years due to Amazon’s anti-competitive contractual practices,” the attorney general said. “Many of the products purchased online would be cheaper if competition were not limited.”
–
Amazon is the largest online retailer in the United States with over 160 million Prime members nationwide. Of these, about 25 million come from California alone.
–
