California state attorney general prosecuted Amazon.com, Inc AMZN for allegedly inflating prices, stifling competition, and violating the antitrust laws with third-party sellers' and wholesalers' contracts, the Wall Street Journal reports.
A 2020 investigation triggered the lawsuit. Attorney General Rob Bonta sought to halt Amazon policies that prevented merchants from offering lower prices through competitors' websites.
The wholesalers were subjected to penalties lest Amazon lowered its prices to match those of competitors, and its profit margin fell below a specified minimum.
The plaintiff urged the court to prevent Amazon from those policies and to appoint a monitor. It also sought unspecified damages for harm to the state economy and $2,500 for each violation of the state's civil and professional code proved at trial.
Amazon allegedly has engaged in illegal practices since at least 2012. Earlier, the District of Columbia had prosecuted Amazon.
The Federal Trade Commission, the European Union, and a congressional committee also probed Amazon.
In July, Amazon agreed to share more data with rivals and offer a wider choice of products for buyers under a deal with EU antitrust regulators ending two of the most high-profile probes in Brussels.
The U.K. competition watchdog disclosed probing Amazon over possible undermining rivals on its platform. Germany's competition authority declared that Amazon would have to abide by stricter rules than smaller rivals.
The U.S. Big Techs and Chinese Big Techs are amid intense scrutiny globally for exploiting their influence over the smaller players.
Price Action: AMZN shares closed higher by 1.36% at $128.55 on Wednesday.
Photo by Christian Wiediger via Unsplash
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