Amazon 'strong-armed' Levi's, Hanes to hike prices on rival sites, California DA says

California Attorney General Rob Bonta has revealed that Amazon allegedly pressured iconic brands like Levi Strauss & Co and Hanes to increase prices on competing online platforms. This claim is part of a broader antitrust lawsuit filed in 2022, which accuses Amazon of undermining competition and inflating consumer prices across the internet. The recently unsealed documents highlight Amazon's agreements with its vast network of vendors, which, according to Bonta, maintain artificially high prices on rival sites. Bonta argued that vendors often feel compelled to comply with Amazon’s demands due to its dominant position in the online retail sector. In response to these allegations, an Amazon spokesperson stated that the company intends to address these claims in court, framing the Attorney General's motion as a distraction from the weaknesses of the case. Among the newly revealed communications from 2022, one exchange between Amazon and Hanes shows Amazon directing the undergarment maker to compare prices on Target and Walmart, which were lower than Amazon's. The filing claims that Hanes subsequently reached out to these retailers to request price increases. In another instance, once Amazon discovered that Allergan's eye drops were sold for a lesser price elsewhere, it temporarily removed the listings. Allergan confirmed that Walmart subsequently raised its price back to $16.99, prompting Amazon to restore the product listing. The allegations extend to Levi's, where Amazon purportedly urged the brand to request a price hike on its khaki pants from Walmart, which complied. Representatives from Hanes, Levi's, and Allergan have not yet provided comments regarding the accusations. Bonta's office is seeking a court order to prevent Amazon from engaging in these alleged price-fixing tactics as the lawsuit progresses and has asked for an independent monitor to ensure compliance. The case is scheduled for trial in 2027. Bonta emphasized that Amazon's actions amount to price fixing, which is illegal under California law, asserting that the company's practices harm competition. With estimates indicating Amazon controls nearly 50% of the U.S. e-commerce market, the company has consistently defended its pricing strategies, claiming they benefit consumers by keeping prices low. However, various antitrust lawsuits, including those from the Federal Trade Commission and 17 states, have challenged Amazon's pricing mechanisms, alleging that they exploit merchants and lead to higher prices on rival websites. Furthermore, third-party sellers on Amazon have voiced concerns about the company's pricing algorithms, which they argue restrict their ability to offer lower prices elsewhere, risking the loss of the crucial 'Buy Box' on Amazon listings. Bonta's recent filings aim to showcase how Amazon collaborates with major retailers and vendors to manipulate market prices, bringing to light specific instances of this behavior.