Photo by: STRF/STAR MAX/IPx 2021 5/11/21
Regulators have been circling Amazon for years, alarmed at its heft and dominance. A new antitrust lawsuit will now test whether Amazon is ripping off consumers through anticompetitive behavior.
The attorney general for the District of Colombia, Karl Racine, sued Amazon on May 25, claiming the online retail giant inflates prices by prohibiting the site’s third-party sellers from offering their products on other sites at lower prices than those listed on Amazon. Racine seeks a jury trial to force Amazon to stop the practice and impose other penalties.
Amazon (AMZN) is surely an aggressive retailer, perhaps even a monopolistic one. But there’s one huge barrier to nailing Amazon with antitrust litigation: It’s not clear Amazon harms consumers, and there’s a solid argument that Amazon has been great for shoppers. Amazon’s rapid delivery to almost anywhere has forced every other retailer to improve its service, and its vast selection saves shoppers hours of time prowling store aisles for oddball items. Amazon ranks No. 5 among Morning Consult’s most trusted brands—behind Google, PayPal, Microsoft and YouTube—hardly the sort of perch occupied by corporate villains.
