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Amazon's Price-Fixing Tactics Unveiled in California AG Case

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Amazon faces allegations of manipulating prices through its Buy Box system, according to newly unsealed documents in a California attorney general's lawsuit. The California Attorney General, Rob Bonta, claims the e-commerce giant pressured independent sellers to raise prices on competitors like Walmart and Target to maintain a false perception of lower prices. Internal emails and deposition testimony reveal Amazon's automated tools tracked vendor pricing across the web, suppressing products that undercut Amazon's own listings, even by a single penny.

For example, Leveret owner Mayer Handler was forced to match or exceed Amazon's $19.99 price on Walmart after his tiger-themed pajama set was suppressed from the Buy Box. Another seller, Esbenshade, saw an 80% sales drop on Amazon when his patio tables were hidden due to lower prices elsewhere, prompting him to raise prices on Wayfair to regain visibility. These tactics, the state argues, stifle competition and harm consumers during an affordability crisis. Amazon denies wrongdoing, asserting its practices ensure competitive pricing and customer trust.

The trial is set for January 2027, with Amazon facing potential penalties for alleged anti-competitive behavior.