In a significant legal development, the District of Columbia’s antitrust case against Amazon has been revived by the DC Court of Appeals.
The case, originally filed by former DC Attorney General Karl Racine in 2021, alleges that Amazon’s business practices unlawfully stifle competition and inflate prices on rival platforms. The lawsuit was dismissed in 2022 but has now been reinstated following a recent ruling from the appellate court.
The core of the District’s complaint revolves around Amazon’s pricing policies, which purportedly prevent third-party sellers from offering their products at lower prices on other online platforms, including their own websites. Although Amazon discontinued a policy in 2019 that explicitly required sellers to offer the lowest prices on its marketplace, the lawsuit contends that Amazon’s current Fair Pricing Policy serves as a “functionally identical substitute.” This policy, according to the District, effectively allows Amazon to maintain control over the pricing of goods across multiple platforms, thereby reducing competition and driving up prices for consumers.
Amazon, however, has strongly contested these allegations. In a statement, Amazon spokesperson Tim Doyle defended the company’s practices, asserting that they are designed to ensure competitive pricing and maintain customer trust. “Just like any store owner who wouldn’t want to promote a bad deal to their customers, we don’t highlight or promote offers that are not competitively priced,” Doyle explained. He emphasized that Amazon believes these policies ultimately benefit both consumers and sellers.
The Court of Appeals’ decision marks a critical moment in the ongoing legal battle, as it acknowledges the plausibility of the District’s claims. The court ruled that the lower court had set an excessively high standard for dismissing the case and found that the District’s allegations sufficiently suggest that Amazon may already possess, or be on the verge of acquiring, monopoly power over the online marketplace.
This ruling is part of a broader wave of antitrust scrutiny that Amazon is currently facing. In addition to the revived DC lawsuit, the company is also the target of a significant antitrust action brought by the Federal Trade Commission (FTC) and several states. These cases collectively accuse Amazon of engaging in practices that suppress competition and harm consumers.
DC Attorney General Brian Schwalb, who succeeded Racine, welcomed the appellate court’s decision, vowing to continue the fight against Amazon’s “unfair and unlawful practices.” Schwalb reiterated the District’s commitment to protecting consumers and fostering innovation and choice within the online retail sector.
The revived lawsuit could have far-reaching implications for Amazon and the broader online retail industry, as it challenges the practices of one of the world’s most dominant e-commerce platforms. As the case proceeds, it will likely draw significant attention from legal experts, regulators, and industry stakeholders alike.
