According to unsealed court documents and internal Amazon emails, the e-commerce giant has been accused of systematically using tactics to drive up prices across online retailers. Data reveals that these strategies have resulted in significant price hikes for everyday consumer goods on platforms such as Walmart, Newegg, and Best Buy.
Internal records obtained by California's attorney general suggest that Amazon employees identify lower prices on rival sites as a direct threat to the company's profitability. Suppliers are allegedly informed that their sales on Amazon.com may be cut or suppressed if their products are found cheaper elsewhere. In some instances, Amazon is said to have matched competitors' lower prices before demanding financial compensation from suppliers for resulting revenue losses.
Industry data reveals that as a result of these pressures, some suppliers have increased product prices on rival platforms, while others have withdrawn their products entirely. For example, the price of a "modern leather" table lamp reportedly surged from $24.99 to $39 on Walmart's website, and an air fryer on Newegg jumped from $84.99 to $149.99.
The lawsuit details the case of an electric ice cream maker initially listed at $17.99 on both Amazon and Best Buy. According to allegations, Amazon temporarily removed the supplier's inventory, prompting Maxi-Matic to withdraw its products from Best Buy. Following this, Amazon reportedly reinstated the product with a price more than tripled to $59.99.
California Attorney General Rob Bonta asserts that these tactics coerced suppliers into raising prices on rival sites. In the air fryer instance, Amazon allegedly suppressed sales and threatened to cease ordering several items from Chefman unless the company reimbursed Amazon for lost revenues due to its price-matching policy. This led Chefman to agree to seek price increases for the air fryer on Target and Newegg, as well as pay an additional $100,000 to Amazon, on top of a previous reimbursement of $400,000.
Amazon has denied allegations of price-fixing, stating that its business practices aim to lower costs and deliver value to consumers. The company maintains it strives for competitive pricing and a broad selection of goods.