An antitrust lawsuit filed by the District of Columbia against Amazon has been reinstated by a federal appeals court, overturning a lower court’s decision to dismiss the case. The District of Columbia Court of Appeals determined that the Superior Court judge had set the bar too high for the district’s complaint against Amazon and that the complaint contained enough evidence to withstand Amazon’s attempt to have the case thrown out.
The lawsuit, initiated in 2021, accuses Amazon of engaging in anticompetitive behavior toward third-party sellers who conduct a majority of the sales on the company’s online platform. Amazon spokesperson Tim Doyle responded by expressing disagreement with the allegations and stating the company’s readiness to present evidence in court showcasing the positive impact of their policies on consumers.
The District of Columbia’s complaint alleges that Amazon artificially inflated prices for consumers and hindered innovation by imposing contractual restrictions on sellers, preventing them from offering products at lower prices or on better terms on their own websites or other platforms. The lower court initially sided with Amazon, citing that sellers had the freedom to set their own prices and claiming that the district’s argument regarding increased prices was vague.
Following the dismissal of the lawsuit by the Superior Court, the District of Columbia appealed the decision, leading to the recent development of the appeals court’s ruling in favor of reviving the case. District of Columbia Attorney General Brian Schwalb reiterated the district’s commitment to challenging Amazon’s practices, which allegedly result in higher prices for consumers and diminish options in online retail.
Besides the District of Columbia’s lawsuit, Amazon is also contending with an antitrust case brought forth by the Federal Trade Commission. This legal action underscores the growing scrutiny faced by tech giants over their market practices.
