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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.
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BREAKING NEWS!!
Evil company known for being evil is caught doing evil things!
It’s not like that even try to hide a lot of the shit they do.
Stuff like:
- locking authors into exclusivity contracts with Kindle Unlimited/Audible (monopoly abuse/anticompetitive*
- Advertising items as “on sale” - especially around Prime Day/Black Friday etc after jacking up the price a few weeks in advance
- Items with “free Prime shipping” but the exact same item without Prime is less about the shipping cost
- Stuff like Kindle ebooks shown with a discount price when no other medium exists, it was never sold at the listed “regular price” to begin with, and/or it’s only available from Amazon in the first place
👏🏻 We 👏🏻 demand 👏🏻 public 👏🏻 executions 👏🏻
Nothing will change until there’s jail time for executives.
New evidence shows Amazon, its vendors, and competing retailers are price fixing, hiking up prices for consumer products and making Amazon richer and richer
So, jail time it is for Jeff Bezos, right?
You joke, but…
Well, yeah, it’s just a joke. Not a funny one, either.
But but but capitalism, free market, competition, etc. etc. etc …
To be fair, this is a result of the lack of competition or the formation of trusts, hence why we had anti trust laws
I’ve pointed out Valve doing basically the same thing; games can’t be priced lower than Steam on competing game storefronts (not Steam key resellers), or Valve will threaten to delist your game. Which would be essentially kill it. And they obviously do this to protect their chunky store fee.
But personal loyalty goes a long way.
I’m trying to reframe the perspective here, not drag into an argument about Valve. A whole lot of people feel good about finding “deals” on Amazon, about Amazon services that have helped them, and especially about the value and convenience the whole platform provides. It’s easy for Lemmy to hate on Amazon, but for the average person, I think this is a harder sell than most of us realize. They’ll dismiss it as the “market working” or California sensationalism or, more likely, just filter it out as noise in their feed, just like most PC gamers would when they read something bad about Valve.
The Valve example sounds similar, but I think Amazon is comparably more nefarious:
- Valve chargers developers $100 per title, and a revenue sharing fee that starts at 30%
- in exchange, devs must follow Valve’s content and pricing policies (which requires developers not to undercut Steam’s prices
Amazon has a few different tiers for sellers, but in general, they charge:
- Monthly fees ($39.99 / mo)
- Referral fees (8-15%)
- Fulfillment and refund fees, which includes additional storage fees
- Advertising fees (for keyword bids or sponsored products)
Valve is kind enough to offer free promotion on the home page (if your game is popular, or has a sale), and digital games are much easier to scale, versus manufacturing and holding physical inventory. They also do a lot of nefarious shit (loot boxes…), but I’d argue at least their partners aren’t being squeezed quite as much.
This is exactly my point; it’s easy to jump in and defend Valve for their good points when, at the end of the day, they take a third of all profits for themselves and have a pseudo monopoly with their platform, just to start.
One can make similar positive points about Amazon, about how much they can save retailers and consumers, especially before they enshittified so significantly.
Valve’s not a good guy, but your attempt to “reframe the perspective” is lacking a major detail. If amazon were to simply GIVE you the product after you’ve paid the competitor then it’s quite a different story… yet that’s what steam will do.
Since when does steam just give away games just because you bought them from another storefront?
I think they’re talking about Steam key resellers, which I wasn’t referencing. That’s a whole other thing (and can indeed be priced lower than the main storefront, with some complications IIRC).
I boycott pretty much all the big corporations. I can’t really boycott Amazon because I am in a super rural part of the US and run a small business. Like most small businesses I purchase a lot of random doodads and thingamabobbers from china. Amazons monopoly on the US post office and their logistic network that gets bulk goods from china to my house is hard to live without. They fix more than prices, the whole economy is stacked in their favor. They basically won globalism and it was bad for the globe.
Valves scope is much smaller and less destructive. They keep their customers due to loyalty and the investment into a steam library.
Yeah…
That’s how Amazon worked. At first.
Back then, online shopping kind of sucked, and this little book store company made its so streamlined I got invested.
You can stop buying from Amazon whenever you choose to. There are online alternatives to every product they sell. You don’t need to be part of it. Whatever excuse you give is wrong.
Sure, but don’t deflect the responsibility to fix the economy onto the individual, this is a problem of monopoly and should be treated as such.
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.
Yes, buying from alternative websites is the bare minimum and the bar is so low it’s underground. But that’s beside the point: Amazon is price fixing across the internet.
And that higher price is because you cannot charge less than Amazon, but to list on Amazon you have to pay a search priority fee that has balloned from 10% to over 40%.
Thats why it’s better to skip the first pages of search returns, or just find the exact same thing on AliExpress for 50% less.
I’ve tried, but some companies only sell their products on Amazon, even when going to the products website, they link back to Amazon when you click the Buy Now button.
I buy things on eBay sometimes and it’s shipped by Amazon with a gift receipt lol
Further their prices often aren’t the best, and it’s going to continue getting worse.
Yeah, I cancelled my subscription last year and I thought I’d missed out because it was on Amazon. When I searched other sites I actually saved money in a few cases. Also, turns out I buy less now as well which is an overall win.
I buy direct from the manufacturer whenever I can.
The prices outside of Amazon will be higher though, that’s the reason for this enforcement, the “Amazon tax”. Cory Doctorow has been talking about it for a while. I’m glad to see someone that can do something heard it.
Finding stuff outside of Amazon isn’t easy, though. Search engines barely show results for anyone outside Amazon, Walmart, and ebay. Too often I’ll find a retailer for a while only for Amazon to buy it later or otherwise destroy them (I miss Woot and Jet and Fictionwise and Bookpool, &c).
The issue I’ve had with the “Just shop somewhere else. Don’t use Amazon” is that it’s very US-specific response. Amazon has absolutely dominated the online shopping space in Canada for years because they are one of the few companies that dealt with the biggest reason why shopping online in Canada has been difficult: Shipping. $20-$40+ domestic shipping fees are normal in Canada for most other retailers which means you could be paying double the cost of your order (or more) just on shipping alone, so as soon as Amazon came in and offered free coast-to-coast shipping they had basically won the market instantly. There were teething issues, of course, and their earlier shipping contractors were horrendous but they did smooth most of that out.
Nowadays they still have very little competition that can beat them on shipping, but there are more and more options popping up. There are some Canadian online stores that offer free shipping or free if over a certain reasonable amount. The COVID pandemic really pushed a lot of local retailers to set up affordable online ordering and delivery systems for local customers, so that has also become an option. Aliexpress has also greatly improved their free shipping process to Canada and considering most of what Amazon sells is just rebranded Aliexpress stuff, it’s a great way of getting the same items for cheaper if you’re ok waiting a few extra days. So most of my online purchases these days have been a mixture of Canadian retailers and Aliexpress.
Went to buy my replacement Bluetooth speaker from the same company my last one was from.
They don’t ship to Australia, Amazon was literally the only option.
oh I just cant wait for the highest profile minor slap on the wrist of the century!
Dont worry guys well give one of the richest men in the world a 100k fine!
Yeah don’t worry. They’ll get a small fine and will appeal and drag it out for years
I could see them threatening something absurd like no longer shipping to California.
Yeah, IIRC when a bunch of large corporations got away with doing this in the 1980s and 90s, a lot of us just assumed it would keep happening. Some people have tried raising the alarm about this, but have been shouted down pretty consistently.
Were Boomers in power then? Ah, yeah they took over sitting as president after Regan, so like late 80s/early 90s. They’ve been sitting as president since, and they’re the most spoiled generation there has ever been. So, it makes sense they’d ignore anything with consequences later down the line. Everything was handed to them, then they hiked up the ladder behind them.
I cannot express enough how angry I am that people still use amazon. Major cringe when friends tell me all the shit they buy on there. I used it 10 years ago a couple times, never once since then. Its shit, slave labor, and enriches billionaires. No one forces you to use it.
I avoid Amazon as much as possible, though on occasion I’ve more or less had no other reasonable choice. But that’s happened something like 4 times in the last 10 years or so.
The big problem with boycotting Amazon is that while it’s easy enough to avoid buying from their online store as much as possible, AWS (Amazon Web Services) is pretty much unavoidable if you’re using the modern internet.
Feel free to provide goods to my rural community any time! You can’t believe that poor people have budget consideration and seek the cheapest product?
Once all the competitors are gone, they will increase the prices to absurd, heartless levels
It’s cringe because it’s affordable and convenient? Whenever I buy something from there I always price compare online and it’s the cheapest hands-down. Some people don’t have the luxury of constantly considering geopolitics and large-scale repercussions when they’re just simply trying to get by.
It super depends on what you’re buying. Personally, I just go without in order to avoid them. The only things I ever buy from Amazon are things I cannot find anywhere else that I need to have, such as water filters for the lead pipes in Montréal.
We don’t have the luxury to ignore how bad Amazon is. Amazon is aware of this and does everything it can to force you to buy from them by under cutting other businesses until competition dries up. Every time I can buy something for a little bit more and skip Amazon that’s a huge a win for everyone from the original supplier, the more local store selling it, and the working class in general.
Edit: Reading and writing more comments, I’m gunna find a way to get those filters from elsewhere even if they cost a bunch more.
No bro water filters from Amazon are unethical, please expose yourself to lead because some guy on lemmy is virtue signaling /s
I cannot tell what side of the argument you’re trying to be on here, gunna be real hokest with ya.
Sure, but there’s many people who are wealthy enough to make the choice and still use amazon because they dont know any better. And this is what happens.
“some people don’t have the luxury of considering whether their product is made from death camp body parts when they’re just simply trying to get by”
Jesus H Fucking Christ. How about electing a government that will regulate Amazon instead of comparing poor people who need consumer goods to nazis. This is some tankie ass behavior
You missed the point completely, so I’ll lay it out for you: Everyone has to draw a line SOMEWHERE. And when a country whose government sends fascist death squads into the streets is supported by a company, there’s a fuckton of lines to be drawn.
There’s ZERO excuse for doing business with amazon. No one is starving because they can’t shop there. So GTFO with your lazy ass morally corrupt exuses.
Yeah, these people saying they NEED amazon probably didn’t live in ye olden days without internet. We survived then, you can survive now.
There’s thousands if not millions of sellers all over the internet. People are lazy/dumb and just want to 1 click buy and are scared to go anywhere but amazon.
And then have the nerve to argue on behalf of “poor people” most of whom probably don’t have any spare money to buy convenience products on amazon.
I mean Walmart wiped out every other store so that’s usually where “poor” people have to go, especially in small towns. Amazon is doing it on a much larger scale.
Unfortunately, they are a master at driving local businesses out of money. Buying a certain pet food at my local retailer (a franchisee) would be about $30. On Amazon, it’s $25 (and sometimes even $15-20, if you do the subscription discount). At the local store, I’d have to pay more and drag the stuff home on my own feet.
It’s the Walmart model. A lot of the frustration is that it’s a systemic problem where individuals are incentivized against their best interests and the best interests of their communities.
Because shareholders. The Line, must go up.
Thankfully (/s) Amazon has enough money that it’s cheaper to bribe politicians than provide a better product. So systemic solutions are that much more difficult.
They’re BUSTED when someone goes to prison.
For now they’re just SLAMMED
Just wait until they get BLASTED in a strongly worded email.
Well, it’s California’s attorney general, so better than even chance for actual punishment.
“Europeans need to be harder on Amazon” Wags greased finger
As far as distractions from the Epstein Files go, this is an exciting one.
…did bezos get mixed up the honeypot?..
Can’t wait for them to be fined one penny for every $20B made.
Hey now, don’t get your hopes up.
This is why you shouldn’t buy US
Quickest solution? Stop buying from Amazon. I quit cold turkey and the sky does not fall. I still buy what I need. I am sometimes saved from buying stuff that I don’t really need but was easily available. Just stop buying from them. They are the evil capitalism that everyone complains about.
…i place amazon orders maybe a half-dozen times per year, typically hard-to-find specialty items from manufacturers who only offer an amazon storefront…
Not possible for some people, for example I wanted some very basic batteries (LR736), couldn’t find it anywhere in the nearest big town which is already 30km away.
Should I order a pack of them from Amazon for 1.8€, should i drive 160km to go buy them, or should I buy it in another online store and pay 6€ shipping? Easy choice no?
You can pay 6€ for shipping today or help amazon finally become the monopolist, and then tomorrow your batteries will just cost 10€.
Another way is to ask at the next electronics store as I’m sure they can order them with their next routine shipment.
6€ is enough for you to give a sale to Amazon and take a sale away from a better business? That’s how cheap your morals are?
