Tech

AG says he forced Amazon to shut down “unlawful price-fixing” program

Cardboard boxes made to resemble Amazon packages, but with the logo in the shape of a frown.

Enlarge / Cardboard boxes made to resemble Amazon packages during a protest outside the home of Amazon Chief Executive Officer Jeff Bezos in New York on Wednesday, Dec. 2, 2020. (credit: Getty Images / Bloomberg Collection)

Amazon must shut down the price-fixing program known as “Sold by Amazon” (SBA) under a legally binding resolution announced today by Washington State Attorney General Bob Ferguson. Amazon had already suspended the program amid an investigation, but the settlement prevents the program from being restarted.

“The ‘Sold by Amazon’ program allowed the online retailer to agree on price with third-party sellers, rather than compete with them,” the announcement said. Ferguson alleged that Amazon violated antitrust laws by “unreasonably restrain[ing] competition in order to maximize its own profits off third-party sales” and that “this conduct constituted unlawful price-fixing.”

Ferguson filed a lawsuit against Amazon and the consent decree in King County Superior Court today.

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