Newly Unsealed Records Expose Amazon's Price-Fixing Practices
Key point
Unsealed documents and seller testimony target Amazon's price-suppression practices.
Details
California's law enforcement authorities allege that Amazon tracked independent seller prices to block them from being lower on competitor sites, and restricted key visibility such as the Buy Box for violators. The newly unsealed materials include internal emails, deposition transcripts, and confidential presentations.
The core issue is whether Amazon pressured sellers to raise their prices on other sites in order to keep Amazon looking like it had the lower price. Some documents reveal that Amazon grew concerned even when a competitor was just 1 cent lower, and internally there was even discussion of ways to pull sellers away from Temu.
Seller testimony is also specific.
- Leveret owner Mayer Handler said a certain product lost its featured offer eligibility because it was 1 cent more expensive than Walmart.
- Terry Esbenshade testified that whenever he lost the Buy Box because another site's price was lower, his Amazon sales plunged by about 80%.
- In one case, he said the Buy Box was restored after he adjusted the Wayfair price to be higher than Amazon's.
California's side believes that Amazon has for years used automated tools to monitor external prices and pressured sellers not to sell cheaper than on Amazon. Amazon denies these claims as entirely false, arguing that its policies are meant to show customers low, competitive prices.
The trial in this lawsuit is set to begin on January 19, 2027, and the unsealed documents were obtained through proceedings in California state court. The article also presents market figures showing that Amazon has expanded its share of U.S. online retail spending from nearly half to 56%, while Walmart has risen from under 8% to 9.6%.
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