California announces another step in suit against Amazon

During a livestream announcement Monday, Bonta said Amazon has “strong-armed vendors” into raising prices elsewhere or pulling products from competing retailers altogether so that Amazon can protect its profit margins.

“That's not competition,” said Bonta. “It's price fixing, and under California law, it's illegal.”

The Center Square reached out Monday to Amazon, which is based in Seattle, and other retailers mentioned by Bonta, but did not get a response by press time.

According to Bonta, the newly announced version of his filing paints a clear and disturbing picture.

“Amazon has been coordinating with vendors and major retailers, including Target, Walmart, Chewy, Best Buy and Home Depot, to raise prices across the market,” said Bonta. “This is about protecting Californians from paying more than they should for everyday products, especially at a time when affordability feels farther out of reach. It's about making sure prices are set by real competition, not behind-the-scenes pressure from Amazon.”

Bonta stressed that the prices were not suggestions from Amazon, rather “directives often backed by threats of penalties” if vendors failed to comply.

“Amazon used vendors as the middleman,” directing them to contact retailers and push for price increases so Amazon wouldn't have to compete, Bonta said.

These are “concrete” examples of “a widespread scheme” going back years and involving different product categories, the attorney general told reporters.

“That's why we're asking the court to immediately stop these practices while our case proceeds,” said Bonta. “Specifically, we're asking the court to prohibit Amazon from agreeing with vendors or competing retailers to fix or raise prices, using vendors as intermediaries to coordinate pricing, communicating with vendors in ways that facilitate price coordination, and demanding payments tied to price matching.”

OAG has also requested an independent monitor to ensure compliance.

“Notably, the court has already denied Amazon's motion for summary judgment on a key cross-claim, a significant setback for Amazon's attempt to avoid being held accountable,” said Bonta.

Near the end of his announcement, Bonta said OAG is not asking Amazon to change its business model. Instead, OAG is asking Amazon to follow the law. That includes California’s Cartwright Act, which makes price fixing illegal.

“Courts have long held that prices must be determined by supply and demand, by market forces, not by agreements orchestrated by a dominant company like Amazon,” said Bonta. “When a company pressures vendors to raise prices elsewhere or withdraw products to protect its own profits, it interferes directly with the competitive process.”

That, said Bonta, takes money out of the pockets of California families every single day on common household items such as diapers, clothing and furniture.

Estimates vary on how many U.S. homes have an Amazon Prime membership. Bonta put that figure at nearly 80 million. Capitol One Shopping puts it at just over 88 million. Snopes.com puts it around 147 million. Whatever the number is, Bonta said 92% of consumers say they’re more likely to buy from Amazon than any other site.

“So when prices are manipulated, there are real consequences for working families,” said Bonta. “The evidence shows coordinated efforts to stabilize or increase prices, harming consumers and distorting the marketplace.”