New Jersey has launched a legal battle against Amazon, accusing the e-commerce giant of exploiting its influence over thousands of package delivery workers operating through its Delivery Service Partner (DSP) network.
The lawsuit, filed in federal court in Newark, alleges that Amazon leveraged its dominant position to keep wages low and working conditions unfavorable for independent drivers and small delivery companies across the state. According to state officials, the company’s business model allows it to exercise significant control over the labor market for package delivery services.
State Attorney General Jennifer Davenport described the case as a landmark challenge, arguing that it is the first time a state has accused a corporation of illegally maintaining a “monopsony”—a market structure in which a single buyer wields overwhelming power over suppliers or workers.
Addressing reporters, Davenport said the alleged practices benefit one corporation at the expense of workers and local businesses.
At the center of the dispute is Amazon’s Delivery Service Partner program, which enables entrepreneurs to establish independent delivery companies that exclusively handle Amazon packages. The retailer has said that the network moves roughly 20 million parcels worldwide every day.
The complaint claims that Amazon discourages union activity among drivers and prevents delivery partners from recruiting workers employed by rival contractors within the program, actions that New Jersey argues violate antitrust laws.
Amazon has strongly rejected the allegations. Company spokesperson Steve Kelly called the lawsuit baseless and said the state’s primary claims had not been presented to Amazon before the legal action was initiated.
Kelly maintained that the independent delivery companies, not Amazon, oversee drivers’ schedules and day-to-day operations. He added that workers are free to choose their employers and decide with whom they wish to associate.
The case adds to Amazon’s growing list of legal challenges in the United States. The company is already facing separate antitrust lawsuits from federal regulators and the state of California over allegations that it unlawfully dominates segments of the online retail market—claims Amazon has consistently denied.
