Washington sues Amazon over 'anticompetitive' practices, alleges price manipulation

Washington DC on May 25 filed an antitrust suit on Amazon claiming that the tech giant abused its dominant position in the e-commerce industry, subsequently harming its consumers. The suit filed by the office of Attorney General Karl Racine alleges that Amazon’s hold of 50-70% of America’s online retail market sales leads to greater consumer prices. The suit filed in the District of Columbia superior court says, “Amazon's online retail sales platform benefits from, and is protected by, Amazon's anticompetitive business practices.”

"Far from enabling consumers to obtain the best products at the lowest prices, Amazon instead causes prices across the entire online retail sales market to be artificially inflated, both for products sold on Amazon's online retail sales platform and on its competitors' online retail sales platforms,” it also says.

Even though Amazon has always claimed it delivers low price for consumers, the lawsuit by the US capital came amid heightened scrutiny of the tech giants that reportedly witnessed a dramatic surge during the COVID-19 pandemic. Last year, the United States and federal antitrust enforcers had filed suits targeting Facebook and Google for illegal dominance of their respective markets in 2020. Racine’s lawsuit now seeks Amazin to stop the “anticompetitive” practices and called for damages and other penalties.

“Amazon has used its dominant position in the online retail market to win at all costs. It maximizes its profits at the expense of third-party sellers and consumers, while harming competition, stifling innovation, and illegally tilting the playing field in its favor,” said AG Racine. “We filed this antitrust lawsuit to put an end to Amazon’s illegal control of prices across the online retail market. We need a fair online marketplace that expands options available to District residents and promotes competition, innovation, and choice.”  

Amazon sued by five women for discrimination

Meanwhile, Amazon on may 19 was already hit by lawsuits from five women who alleged harassment, discrimination and retaliation, reported Bloomberg. The five women, who reportedly held jobs in the tech giant’s headquarters, regional offices and logistics operations, accused the company of favouring men over women in career growth and paving way for the supervisors to denigrate them and face retaliation if they complain. They are all represented by Wigdor LLP, the law firm representing a plaintiff in a high-profile discrimination and harassment lawsuit targeting Amazon and filed earlier this year.

Earlier in February, New York Attorney General Letitia James sued the e-commerce platform, Amazon for failing to protect its workers in New York City amid the COVID-19 pandemic and retaliated against the employees who attempted to raise concerns over the conditions. In a statement, New York attorney general, Letitia James said that the American multinational technology company failed to provide ‘adequate health and safety measures’ to its employees at NY facilities. 

IMAGE: AP