Amazon.com Inc. faces intensified legal pressure as a proposed class action lawsuit alleging anticompetitive pricing practices gains traction. The consumer class action accuses the retail giant of imposing restrictions on third-party sellers, preventing them from offering lower prices on alternative online platforms. According to the plaintiffs, these practices distort fair competition and disadvantage both sellers and shoppers.
In a sealed decision, dated 19 November 2024, Judge John H. Chun of the U.S. District Court for the Western District of Washington denied Amazon’s request to dismiss the lawsuit. The judge determined that the plaintiffs had presented a valid argument, warranting further legal examination. This ruling obliges Amazon to respond to the allegations in court, with both parties required to submit a joint procedural statement by 2 December 2024.
This lawsuit adds to Amazon’s growing list of legal woes. In September 2023, the Federal Trade Commission (FTC) filed its own antitrust case against the company, accusing it of manipulating marketplace dynamics to maintain dominance. The FTC claims Amazon penalizes sellers who offer lower prices on competing platforms and forces them to use its fulfillment services for better visibility and access to Prime customers. Both actions, the FTC argues, suppress competition and harm consumers by inflating prices and limiting options.
While the consumer class action mirrors some of the FTC’s claims, this case focuses on direct harm to shoppers. If successful, it could result in significant changes to Amazon’s pricing policies and broader regulatory scrutiny of major tech firms.
Amazon has consistently denied engaging in monopolistic behavior, defending its practices as consumer- and seller-friendly. The company argues that its policies encourage innovation, streamline operations, and deliver competitive pricing.
