California’s top legal official has accused Amazon of wielding its massive market influence to force competing retailers, including Walmart, to inflate prices on their own websites to prevent them from offering better deals than the online retail giant, according to court documents made public Monday.
State Attorney General Rob Bonta filed the antitrust lawsuit against Amazon in San Francisco Superior Court two years ago, claiming the company broke California’s competition and fair business laws. While the case is set for trial next year, Bonta wants a judge to immediately halt what he calls Amazon’s illegal practices.
The newly released court documents describe how the alleged price manipulation typically works: Amazon’s Seattle headquarters identifies products sold cheaper on rival websites, then demands vendors either raise those competing prices or face consequences like restricted promotional opportunities or complete removal from Amazon’s marketplace.
One specific case outlined in the filing involves Amazon, clothing manufacturer Levi Strauss & Co., and Walmart working together to coordinate pricing on khaki pants. Amazon reportedly sent Levi Strauss links showing pants priced lower on Walmart’s website, expressing hope that the issue could be “resolved over the next few days.”
Within 24 hours, Levi Strauss had contacted Walmart about raising the pants’ price back to $29.99, the court filing states.
“This is about protecting Californians from paying more than they should for everyday products, especially at a time when affordability feels farther and farther out of reach,” Bonta, a Democrat, explained during a virtual press briefing Monday.
Amazon’s representatives rejected Bonta’s legal motion as “a transparent attempt to distract from the weakness of its case” using what they called “supposedly ‘new’” evidence.
“Amazon is consistently identified as America’s lowest-priced online retailer, and we’re proud of the low prices customers find when shopping in our store. Amazon looks forward to responding in court at the appropriate time,” the company stated.
A Walmart representative responded via email that the company “does not comment on litigation in which we are not a party. We will always work hard on behalf of our customers to keep our prices low.”
Levi Strauss has not yet provided a response to requests for comment.
Bonta explained that his office is targeting Amazon specifically because “the unlawful conduct stems from and originates from Amazon,” though he hasn’t ruled out pursuing other retailers and suppliers later.
The alleged price coordination scheme affects numerous product categories, including household decorations, gardening supplies, and pet products, according to the court filing.
The court hearing for Bonta’s request for an immediate injunction is scheduled for July.
