Because other retailers can’t offer prices lower than on Amazon, consumers are forced to pay prices that are artificially inflated by Amazon’s contracts, the complaint alleges.
It also cites a finding by German competition regulators that Amazon’s contract language “resulted in significant price increases in e-commerce” in that market.
Amazon didn’t immediately respond to a request for comment.
The complaint calls for a court order blocking Amazon from what California claims are anticompetitive contracts, as well as fines and disgorgement of Amazon’s allegedly ill-gotten gains through the agreements.
Chamber of Progress, a tech industry-backed advocacy group, said Califoirnia’s suit, if successful, could “force Amazon to raise prices.”
“That makes no sense while consumers shop for bargains to counter inflation,” said Adam Kovacevich, the group’s CEO, adding that a similar suit by Washington, DC’s attorney general was dismissed last year by the Superior Court of the District of Columbia.
