An appeals court has revived an antitrust lawsuit against Amazon filed by the Attorney General of Washington, DC more than three years ago. The online retailer must now face allegations that it illegally raised prices for consumers.
The lawsuit was originally filed in 2021 and cited Amazon’s practices related to third-party sellers on its platform. Specifically, it called out a provision in the company’s agreements with third-party sellers that allowed it to punish businesses that offered its products at lower prices on non-Amazon platforms. Karl Racine, the AG at the time, said these agreements allowed the company to “impose an artificially high price floor across the online retail marketplace.” Racine later expanded the case to include Amazon’s pricing tactics for wholesalers.
Amazon has disputed those allegations, and the case was dismissed in 2022. But an appeals court has now reversed that decision. “Viewed as a whole, the District’s allegations about Amazon’s market share and maintenance of its market power through the challenged agreements plausibly suggest that Amazon either already possesses monopoly power over online marketplaces or is close to a ‘dangerous probability of achieving monopoly power,’” the judge wrote.
“We disagree with the District of Columbia’s allegations and look forward to presenting facts in court that demonstrate how good these policies are for consumers,” Amazon spokesperson Tim Doyle told Engadget in a statement. “Just like any store owner who wouldn’t want to promote a bad deal to their customers, we don’t highlight or promote offers that are not competitively priced. It’s part of our commitment to featuring low prices to earn and maintain customer trust, which we believe is the right decision for both consumers and sellers in the long run.”
The reversal adds to Amazon’s antitrust woes. The company is also facing a lawsuit from the Federal Trade Commission and more than a dozen states. The UK’s antitrust regulator has also opened an investigation centered around the company’s $4 billion investment into Anthropic.
In a statement, DC’s current AG Brian Schwalb noted that the district “was the first jurisdiction to take antitrust enforcement action” against the company. “Now, our case will move forward, and we will continue fighting to stop Amazon’s unfair and unlawful practices that have raised prices for District consumers and stifled innovation and choice across online retail.”
Update, August 22 2024, 7:13 PM ET: This story has been updated to include a statement from Amazon.