Daily Management Review

US will hold Amazon accountable for price hikes


Washington Attorney General Karl Racine has announced the filing of an antitrust lawsuit against Amazon Corporation. He said the company's policies were driving up prices for consumers, CNBC reported.

Noah Kalina
Noah Kalina
The grounds for the lawsuit were price agreements, which, according to the plaintiffs, prevent the corporation's partners from selling goods on other platforms at a lower cost.

The prosecutor is demanding not only to stop such practices of the company in relation to its partners, but also to impose fines on Amazon.

Recall that until March 2019, Amazon explicitly prohibited its customers from setting lower prices on other marketplaces for its products.

However, growing antitrust scrutiny has forced the US online retail giant to change tactics. Now, instead of an outright ban, the new conditions give the retailer the ability to impose sanctions on partners who trade at a discount on rival marketplaces.

Last autumn 2020, the US House of Representatives' Subcommittee on Antitrust Legislation submitted a report of over 400 pages on Jeff Bezos' Amazon actions. The authors of the document concluded that the company was using its dominant market position to squeeze competitors.

source: cnbc.com