New Jersey has filed a lawsuit against Amazon, accusing the e-commerce giant of illegally suppressing wages and working conditions for thousands of delivery drivers through its Delivery Service Partner (DSP) program. The state alleges Amazon's dominance over its delivery network constitutes an unlawful "monopsony," where the company uses its buying power to dictate terms to small businesses and their drivers.

Unlike typical monopoly cases, this lawsuit focuses on Amazon's alleged exploitation of its purchasing power to depress compensation. The complaint states that Amazon controls nearly every aspect of the DSPs' operations, including routes, hiring, pay, and performance standards, leaving contractors with minimal bargaining power and little ability to serve other clients.

The state also claims Amazon has actively discouraged unionization. According to the lawsuit, Amazon has terminated or threatened to terminate DSPs whose workers engaged in organizing efforts. The complaint cites an instance in Queens, N.Y., where alleged union activity led to reduced routes, layoffs, and the eventual termination of a contractor.