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California lawsuit alleges Amazon price‑fixing scheme

Ars Technica •
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In a California lawsuit, prosecutors allege that Amazon systematically raises prices on rival sites by coordinating with vendors. Internal emails presented by the state show employees directing suppliers to adjust pricing, then urging phone calls to avoid written requests. The complaint argues these practices contradict the company’s public claim of being the nation’s lowest‑priced retailer.

Attorney General Rob Bonta says the emails are not isolated incidents but represent “countless interactions” spanning years, product lines and multiple staff. He claims Amazon trains workers to use vague language or to move negotiations off‑record, insulating the platform from price-fixing. The state seeks a preliminary injunction to halt the alleged scheme, with a hearing set for July 23.

Bonta argues the scheme siphons money from millions of California shoppers and narrows product choice, demanding the court find Amazon’s conduct “explicit” and illegal. Amazon must now prove it would suffer “grave or irreparable harm” if the injunction is granted, a burden Bonta says it cannot meet. The case is slated for trial in January 2027.

If the court issues the injunction, Amazon would need to overhaul its vendor‑communication protocols, potentially exposing a broader industry practice of covert price coordination. Retailers reliant on the marketplace could see pricing strategies shift toward greater transparency, while consumers might finally see the advertised low‑price promise reflected at checkout.