![]() "The perception is that they have almost zero negotiating leverage" when it comes to price, said Tuna Amobi, media and entertainment analyst with CFRA Research. Despite this, Amazon remains the dominant source for many of these sales. and others to reach new consumers in the wake of the pandemic. Many Amazon sellers are increasingly diversifying to online platforms run by Walmart Inc. The suit takes on extra significance given that independent third-party merchants account for a majority of physical gross merchandise sales on Amazon's site, at 60% as of 2019, according to data from Marketplace Pulse, a firm that collects data on e-commerce companies, including Amazon. "The relief the AG seeks would force Amazon to feature higher prices to customers, oddly going against core objectives of antitrust law." "Amazon takes pride in the fact that we offer low prices across the broadest selection, and like any store, we reserve the right not to highlight offers to customers that are not priced competitively," the spokesperson said. ![]() In an email statement to S&P Global Market Intelligence June 1, an Amazon spokesperson said sellers set their own prices for the products they offer in its store. "Amazon will say 'this hasn't been condemned in the United States before,'" Kovacic said. Meanwhile, Amazon will likely bring an expert forward who argues that the company's pricing practices are pro-competitive or have no competitive effect, said Kovacic, who currently serves as a law professor at George Washington University. The burden is always on the plaintiff to show anti-competitive effects." "Without the benefit of cases that have said 'this practice is anti-competitive,' you have to explore some new terrain. "There isn't a body of litigation that has looked at this in detail, in this setting, in trial proceedings," said f ormer Federal Trade Commission Chair William Kovacic. A lack of successfully litigated cases focused on this issue could also pose an obstacle. Net Health Shops LLCīut experts say the suit is limited in scope because any judgment would apply to the district alone. A container being unloaded in an Amazon seller's warehouse. The lawsuit seeks to stop Amazon’s use of the price agreements, recover damages and impose penalties to discourage similar conduct by Amazon and other companies. In a lawsuit filed May 25 in Washington, D.C., Superior Court, Washington, D.C.'s Attorney General Karl Racine claimed Amazon artificially inflated prices across the entire online retail market by prohibiting merchants that sell on Amazon's site from charging lower prices for the same products elsewhere. engaged in anticompetitive conduct, but analysts believe courts will require a rigorous standard of proof for the case in the absence of any U.S.
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