"Anticompetitive Contracts" Washington DC Prosecutors Expand Amazon Litigation

Karl Racine, Washington DC Attorney General (Photo by The Washington Post)

[Asia Economy Reporter Yujin Cho] Washington DC is expanding the scope of its antitrust lawsuit against Amazon, the world's largest e-commerce company, the Washington Post reported on the 13th (local time).

Karl Racine, Attorney General of Washington DC, added allegations to the complaint that Amazon maintains its monopoly by binding wholesalers with anti-competitive contracts and unfairly raising prices in the online market.

The amended complaint submitted by Attorney General Racine includes claims that Amazon entered into contracts requiring partner companies to guarantee Amazon's minimum profit when purchasing goods from wholesalers and reselling them to consumers.

Amazon is said to be selling products at prices that do not generate profit to undercut competitors, while requiring partner companies to compensate for the difference.

The prosecution believes that such contract provisions by Amazon are intentionally designed unfair agreements to evade antitrust laws.

Racine argued, "These measures suppress price competition with online sellers, build their monopoly, and ultimately lead to higher consumer prices and fewer choices."

Racine also claimed that these contract provisions have the practical effect of encouraging sellers to raise prices on platforms other than Amazon.

In the lawsuit originally filed in May, Racine focused on contract provisions preventing third-party sellers on Amazon from offering products at lower prices on other competing platforms.

In response, Amazon reiterated its May statement in a press release, saying that the Washington DC Attorney General is mistaken.

Amazon spokesperson Jack Evans said, "Sellers set their own product prices on our platform," and added, "The remedies sought by the Attorney General would force Amazon to charge customers higher prices, contrary to the core goals of antitrust laws."

According to foreign media, Amazon is also under investigation by the Federal Trade Commission (FTC) for antitrust business practices, and the attorneys general of Massachusetts, Pennsylvania, New York, and California are investigating whether Amazon has violated antitrust laws.

Following the news of the lawsuit expansion, Amazon's stock closed at $3,457.17, down 0.35% from the previous session.

This content was produced with the assistance of AI translation services.