California Attorney General Rob Bonta last night filed a request for a preliminary injunction in California’s existing case against Amazon for price fixing. Attorney General Bonta’s 2022 lawsuit alleged that the company stifled competition and caused increased prices across California through its anticompetitive policies in order to avoid competing on price with other retailers. New evidence paints a clearer and more shocking picture. The motion for a preliminary injunction comes after a robust discovery process where California uncovered evidence of countless interactions in which Amazon, vendors, and Amazon’s competitors agree to increase and fix the prices of products on other retail websites to bolster Amazon’s profits. Time and again, across years and product categories, Amazon has reached out to its vendors and instructed them to increase retail prices on competitors’ websites, threatening dire consequences if vendors do not comply. Vendors, bullied by Amazon’s overwhelming bargaining leverage and fearing punishment, comply — agreeing to raise prices on competitors’ websites (often with the awareness and cooperation of the competing retailer), or to remove products from competing websites altogether. Amazon’s goal is to insulate itself from price competition by preventing lower retail prices in the market at the expense of American consumers who are already struggling with a crisis of affordability.
BREAKING NEWS!!
Evil company known for being evil is caught doing evil things!
WesternInfidels@feddit.online 1 day ago
There was a time when Amazon was not full of scummy rip-off products, when it was not playing games with prices, when it was not a cloud-computing powerhouse, and you know what happened?
That’s right, they crushed their adversaries (retail shopping) and earned billions in profits. They won.
But somehow that’s not enough winning, there isn’t enough winning until all the value has been vacuumed up from the world.
MnemonicBump@lemmy.dbzer0.com 1 day ago
Bezos explicitly undercut the competition for years to drive all of the competition out of business. Amazon took as much time from 1997-2016 to make as much profit as they did in 2017, which is also (not) coincidentally when they hit peak market saturation and were able to start raising their prices.
So what you’re talking about was real, but it wasn’t like, “back when Amazon was good”, they were just preparing for what they are now. Having a huge monopoly on just about everything has always been their win condition, and they’re no where near done winning.
octobob@lemmy.ml 1 day ago
Yeah. It’s the same thing Uber did with pushing cab services out of business.
Not only that, but AWS is the real money maker for them. Not that retail and gaming and prime and whatever don’t also make boat loads of cash, but it doesn’t even graze AWS. The scale of these data centers is unreal and most of the internet runs on AWS.
I’m an industrial electrician with background on what they’re ordering and installing in terms of control panels and if you saw the weekly shipments it’d make you sick. And we’re only one supplier, they have others.
kescusay@lemmy.world 1 day ago
And that is why I no longer buy anything from them. I’m just embarrassed it took me as long as it did to realize what they were really doing.
defaultusername@lemmy.dbzer0.com 1 day ago
AKA the Walmart method.
LincolnsDogFido@lemmy.zip 1 day ago
You can’t really compare online book retailer Amazon to global online marketplace Amazon. Your underlying point is still mostly correct, but I would exclude the years that they were primarily focused on books. From my lived memory they didn’t really become the online retail juggernaut until a few years after the launch of Prime. Free shipping turned them into what it is today. So maybe the best comparison would be from like 2006-2016? Or maybe I’m wrong and thebl distinction isn’t necessary. Idk. I’m just trying to foster conversation
artyom@piefed.social 1 day ago
Ehhh not really. They operated at massive losses for a decade or more to eliminate the competition while growing their customer base. This is simply stage 1 of enshittification. You can only do this if you’re unbelievably filthy fucking rich. Then at some point they needed to cash out on all the good will and reputation they developed and that brings us to the shithole economy of today where people are simply too lazy to shop anywhere else.
pomegranatefern@sh.itjust.works 1 day ago
The other commenters here are right about Amazon’s initial methods, but I’m also going to highly recommend Cory Doctorow’s Enshittification for a detailed explanation of how this happens (including a breakdown on Amazon specifically) and what to do about it.
Entropy_Pyre@lemmy.ca 1 day ago
To quote a favorite singer of mine,
You could fill a man with gold, and still have room for greed.