California Accuses Amazon of Forcing Brands to Raise Prices on Competitors Like Walmart and Target

California Attorney General Rob Bonta has released an unredacted copy of a legal document filed in the state’s antitrust lawsuit against Amazon, revealing new details of the company’s alleged price-fixing scheme.

The filing accuses Amazon of pressuring brands and vendors to “fix” the retail prices of their products on competitors’ websites, including Walmart and Target. According to the document, Amazon leverages its “overwhelming bargaining leverage” to coerce brands into compliance, threatening penalties such as the loss of buy buttons or prominent listings if they refuse.

California’s Antitrust Lawsuit Against Amazon

California filed its antitrust lawsuit against Amazon in 2022, alleging that the company prevented sellers from offering lower prices on other platforms. The state claimed vendors faced retaliation—such as reduced visibility—if they defied Amazon’s pricing demands.

In February 2024, Bonta filed for a preliminary injunction, seeking to halt Amazon’s alleged illegal conduct while the lawsuit proceeds toward trial next year.

Examples of Amazon’s Alleged Price-Fixing Demands

The unredacted filing includes several instances where Amazon allegedly pressured brands to raise prices on competitors:

• Arlo: Amazon emailed the security systems provider about a $549.93 camera listed on Walmart, stating the price “did not go back up.” After Arlo responded, Amazon demanded corrections by the end of day (EOD). Arlo later provided a screenshot showing the price increased to $649.99 on Walmart.
• Levi’s: Amazon asked the clothing brand to “resolve” lower prices for its khaki pants on Walmart.
• Hanes: Amazon instructed the apparel company to increase the prices of its clothing items on both Walmart and Target.

Amazon’s Response to the Allegations

“The Attorney General’s motion is a transparent attempt to distract from the weakness of its case, coming more than three years after filing its complaint and based on supposedly ‘new’ evidence it has had for years. Amazon is consistently identified as America’s lowest-priced online retailer, and we’re proud of the low prices customers find when shopping in our store. Amazon looks forward to responding in court at the appropriate time.”
— Amazon spokesperson