Saturday, September 21

Amazon, sued and accused by the Attorney General in Washington of artificially inflating product prices


Seattle giant Amazon inflates prices and continues to claim a monopoly on online sales, putting pressure on retailers with its policies

Amazon, demandada y acusada por el Fiscal General en Washington de inflar los precios de los productos artificialmente
Amazon, monopoly and abuse of “power”.

Photo: Photo by David Ryder / / Getty Images

Alexandra Liendo

The District of Columbia has sued online sales giant Amazon and charged the company of “anti-competitive practices” by inflating its prices through the agreements that it imposes on sellers more small.

In this way the attorney general Karl Racine has said that with this activity Amazon breaks the District’s antitrust laws.

Amazon had a policy of prohibiting sellers on its platform from selling the same products at lower prices outside of it. Then this policy changed to that if those sellers incurred in selling cheaper, outside of Amazon, they could be degraded or prohibited from selling on the platform.

All this leads to prices are inflated, since retailers must pay high fees for the use of the platform, almost a 40% and not being able to increase prices on other sites , but only on Amazon to compensate the commission they pay, then they offset those costs by inflating prices.

“ We are filing this antitrust lawsuit to end Amazon’s illegal control of the internet retail world ”, stated DC Attorney General Karl Racine.

The e-commerce titan and its logistics had already been dubbed “Amazon’s bear hug” which was referring to precisely that way of “Squeeze” their sellers due to the privileged position they have and in which many sellers who want to be present globally, they have no choice but to stay with Amazon.

In 2017, Amazon had already been openly denounced by Lina Khan, an American jurist and professor of law at Columbia University. Khan, who later served as an adviser to the Congressional committee, wrote an article entitled “The Amazon Antitrust Paradox,” which generated a lot of controversy.

The company of the Online sales have always argued that their customers have always been satisfied. Although the article already accused him of “abuse of power.”

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