California Attorney General Rob Bonta last night filed a request for a preliminary injunction in California’s existing case against Amazon for price fixing. Attorney General Bonta’s 2022 lawsuit alleged that the company stifled competition and caused increased prices across California through its anticompetitive policies in order to avoid competing on price with other retailers. New evidence paints a clearer and more shocking picture. The motion for a preliminary injunction comes after a robust discovery process where California uncovered evidence of countless interactions in which Amazon, vendors, and Amazon’s competitors agree to increase and fix the prices of products on other retail websites to bolster Amazon’s profits. Time and again, across years and product categories, Amazon has reached out to its vendors and instructed them to increase retail prices on competitors’ websites, threatening dire consequences if vendors do not comply. Vendors, bullied by Amazon’s overwhelming bargaining leverage and fearing punishment, comply — agreeing to raise prices on competitors’ websites (often with the awareness and cooperation of the competing retailer), or to remove products from competing websites altogether. Amazon’s goal is to insulate itself from price competition by preventing lower retail prices in the market at the expense of American consumers who are already struggling with a crisis of affordability.

  • blankwire@lemmy.world
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    18 hours ago

    The Valve example sounds similar, but I think Amazon is comparably more nefarious:

    • Valve chargers developers $100 per title, and a revenue sharing fee that starts at 30%
    • in exchange, devs must follow Valve’s content and pricing policies (which requires developers not to undercut Steam’s prices

    Amazon has a few different tiers for sellers, but in general, they charge:

    • Monthly fees ($39.99 / mo)
    • Referral fees (8-15%)
    • Fulfillment and refund fees, which includes additional storage fees
    • Advertising fees (for keyword bids or sponsored products)

    Valve is kind enough to offer free promotion on the home page (if your game is popular, or has a sale), and digital games are much easier to scale, versus manufacturing and holding physical inventory. They also do a lot of nefarious shit (loot boxes…), but I’d argue at least their partners aren’t being squeezed quite as much.

    • brucethemoose@lemmy.world
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      17 hours ago

      This is exactly my point; it’s easy to jump in and defend Valve for their good points when, at the end of the day, they take a third of all profits for themselves and have a pseudo monopoly with their platform, just to start.

      One can make similar positive points about Amazon, about how much they can save retailers and consumers, especially before they enshittified so significantly.