Amazon has failed in its attempts to get a US antitrust case thrown out and will face consumer claims that it artificially drove up the cost of goods sold by other retailers.
The case was initially filed in 2020 by residents of 18 states and has estimated damages between $55-172 billion. The case challenges an Amazon policy that stops retailers from offering lower prices for goods sold elsewhere if they also want the product available on Amazon Marketplace.
Amazon had challenged the case in an attempt to get it thrown out, but it was upheld by US District Judge Richard Jones in Seattle. An order from Jones trimmed the lawsuit, but said it could proceed.
The lawyer for the plaintiffs, Steve Berman, said that the ruling was "good news for tens of millions of consumers who have been overcharged by Amazon,” adding that the e-commerce giant’s “main arguments are rejected.”
For its part, Amazon has denied the claims and argued that its ‘fair pricing policy’ has procompetitive benefits for the US retail market. It said that US antitrust law encourages the policy.
Amazon will still be able to defend its practices at a later stage in the litigation, while it can also ask the court not to allow consumers to sue as a class.
The court will review a class certification briefing schedule by mid-April.
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