New Jersey's attorney general has filed an antitrust lawsuit against Amazon, alleging the company unlawfully uses its market dominance to suppress wages and worsen working conditions for delivery contractors and their drivers. The lawsuit claims Amazon's "dominant buyer power" prevents Delivery Service Partner (DSP) drivers from unionizing and stifles competition for labor among contractors.

This marks the first state-led monopsony conduct complaint, defining Amazon as a "dominant buyer" that dictates payment terms. The complaint details how Amazon controls aspects of the DSP program, including uniforms, vans, routes, and driver monitoring, allegedly blacklisting workers involved in unionization efforts. Drivers reportedly earn significantly less than those working for the US Postal Service, UPS, and Fed Ex.

Amazon spokesperson Steve Kelly disputes the claims, stating DSPs are independent business owners who choose their clients and manage their drivers. He asserts that the Attorney General's office did not engage in sufficient fact-finding before filing suit and expresses confidence that Amazon will prevail in court. This action follows a previous FTC investigation into Amazon's Flex program concerning $61.7 million in stolen tips.