'Amazon Can Do Whatever It Wants': Accused of Pressuring Suppliers to Raise Rival Prices

Amazon faces fresh criticism after court documents and internal emails allegedly showed the company pressuring suppliers to hike prices for rival retailers or stop selling some products altogether.

The allegations, filed by California Attorney General Rob Bonta, contend the e-commerce giant has used its market dominance to suppress competition and maintain its pricing strategy. Amazon denies the allegations, saying its approach encourages fair competition and results in lower prices for consumers.

The Alleged Tactics Behind Rival Price Increases

According to court documents, Amazon allegedly tracked lower prices offered at competing retailers such as Walmart, Home Depot, and Best Buy. Then, the company pressured suppliers to either cover the difference in revenue or remove lower-priced listings from other retailers.

The lawsuit alleges that the pressure led some suppliers to increase prices at competing retailers, while others removed the products on competing platforms entirely. California officials argue that this helped drive up costs for shoppers outside Amazon.

The lawsuit points to a handful of examples. This includes a Newegg air fryer that spiked from $84.99 to $149.99, a Walmart lamp that shot up from $24.99 to $39, and a Best Buy ice-cream maker vanishing before reappearing on Amazon at a much higher price.

Suppliers Say They Felt Trapped

Several suppliers described feeling pressured by Amazon's dominance and felt they were unable to challenge it due to the company's influence over their business. Chefman executive Mark Friedman declined to discuss an alleged incident, saying: 'I can't talk to you because I still do business with Amazon and I don't want to bite the hand that feeds me.'

Ryan Turano of AgroThrive also said that suppliers have very little leverage when it comes to dealing with the retail giant: 'We were at their mercy. Because we didn't have the resources to push back.' He added: 'It was just a nightmare... They're so big they can do whatever they want.'

The lawsuit also alleges that some Amazon employees were instructed not to document certain price discussions. One former customer success manager recalled being told: 'Do not have this in writing.'

Bonta argued that coded language and verbal discussions didn't change the alleged practice. 'Whatever euphemism it is... all that means is fix prices or suffer the consequences, and that's illegal,' he said.

Retail Giant Defends Its Pricing Practices

Amazon has strongly denied the allegations, accusing prosecutors of taking isolated emails out of context from almost one million supplier exchanges. The company says that its negotiations are focused on lowering prices for shoppers and warns that the lawsuit could end up making shoppers pay more. It disputes claims that it entered into price-fixing arrangements with competing retailers, describing its dealings with suppliers as routine business negotiations.

The online retailer also says independent studies show its prices are often lower than those offered by many major online retailers. It argues that its approach has helped customers save money. Meanwhile, state regulators claim Amazon used its dominance to pressure suppliers not to provide better prices to competing retailers. The court's ruling could decide whether those practices were lawful or an illegal use of market power.