In a surprising turn, Washington, D.C.’s Court of Appeals has breathed new life into the district’s antitrust case against Amazon, ruling that the lawsuit’s claims are plausible enough to proceed. The court’s decision reverses an earlier dismissal, asserting that Amazon’s pricing policies may indeed be unlawfully suppressing competition.
The lawsuit, originally filed in May 2021, accuses Amazon of stifling competition by imposing restrictive agreements on its suppliers and third-party sellers. These agreements allegedly prevent sellers from offering lower prices on other platforms, as Amazon reportedly penalizes those who do by reducing the visibility of their listings. Moreover, the lawsuit claims that Amazon’s arrangements with wholesalers, which guarantee the company a minimum profit margin, further discourage competitive pricing. If Amazon reduces a product’s price to compete with other online retailers, wholesalers must compensate the difference, thus deterring them from lowering prices.
Amazon is concurrently defending itself against similar allegations in a separate case brought by the U.S. Federal Trade Commission and several states. Despite the court’s ruling, Amazon spokesperson Tim Doyle maintained the company’s stance that its policies are consumer-friendly, emphasizing that Amazon only promotes competitively priced offers.
Meanwhile, D.C. Attorney General Brian Schwalb has lauded the court’s decision, reaffirming the district’s commitment to challenging Amazon’s practices, which he argues have led to higher prices for consumers and reduced innovation in the online retail space.
The case now returns to court, where the district will continue its efforts to hold Amazon accountable for what it claims are unfair business practices that harm both competition and consumers.
