Shulou(Shulou.com)11/24 Report--

On the morning of September 15, Beijing time, it was reported that California prosecutors took Amazon to court a few days ago. California prosecutors accused the company of violating California antitrust and unfair competition laws by signing contracts with third-party sellers and wholesalers to raise prices and curb competition.

The latest lawsuit, California Attorney General Rob Bonta, said that some third-party sellers offered lower prices on other platforms and were punished by Amazon, including a downgrade in product lists and search results, in violation of California's market competition law.

Before the formal prosecution, California prosecutors had been investigating Amazon for more than two years. Prosecutors say Amazon dominates the US e-commerce market, allowing it to force third-party sellers to accept harsh terms and pay higher store commissions.

Attorney General Botha said Amazon's violations have had a widespread impact on the US retail market, driving up the sales prices of retailers including Wal-Mart and eBay, thus preventing Amazon from facing more fierce price competition.

Facing a number of investigations this is the latest investigation or lawsuit facing Amazon. Previously, Amazon was accused of manipulating millions of third-party sellers in its stores. Amazon is also under investigation for a number of big mergers and acquisitions, including the recent $3.9 billion acquisition of One Medical, an American hospital chain.

In July, in response to the European Commission's antitrust investigation, Amazon agreed to compromise that it would no longer use sales data from third-party sellers in the sales of its own-brand goods.

However, an official of the European Commission said in an interview with the British media this week that Amazon's work to comply with the upcoming EU competition law was only in the process and had not been completed.

Attorney General Botha said in a written statement that Amazon forced third-party sellers to accept unfair agreements, driving up retail prices on other platforms. Amazon is well aware that third-party sellers cannot say "no". It is reported that the complaint of the California prosecutor's office was submitted to the San Francisco Superior Court on Wednesday.

It is worth mentioning that last year, Karl Racine, the attorney general of Washington, filed a similar lawsuit in court. However, the court rejected Racine's complaint, arguing that Racine's office did not conduct sufficient investigation and did not have sufficient evidence to prove the effect of Amazon's policies on market competition. Last month, with the help of the antitrust bureau of the U.S. Department of Justice, Racine filed an application to reopen the lawsuit.

Racine said on social media that in this case, the law and facts are on the side of the prosecution and on the side of Washington residents.

Prosecutors are reported to have taken advantage of the findings of more than 10 prosecutors against Amazon in this lawsuit in California. In an interview with the media, prosecutors said they believed the evidence would support the charges against Amazon. It is reported that prosecutors also interviewed current and former employees of Amazon during the investigation.

In the lawsuit, California prosecutors asked the court to issue an injunction forbidding Amazon from punishing sellers who sell goods at lower prices on other platforms. Prosecutors have asked Amazon to provide financial compensation to make up for the losses suffered by American consumers as a result of higher prices. Prosecutors also asked Amazon to return ill-gotten gains to sellers and pay fines, which could prevent other U. S. e-commerce platforms from introducing similar illegal policies.

Amazon has responded to allegations of unfair agreements with third-party sellers, which it has refuted in the past. For example, in response to the lawsuit from prosecutors in Washington, Amazon said that third-party sellers are free to set prices for other platforms, but Amazon itself has the right not to highlight sellers whose prices are not competitive.

An Amazon spokesman reiterated that view on the California prosecution's lawsuit. The spokesman said that the outcome sought by California prosecutors could lead Amazon to raise the price of goods to consumers, which is not in line with the core purpose of US antitrust law.

The spokesman expressed the hope that the California court will come to the same conclusion as the Washington court and dismiss the prosecution's lawsuit as soon as possible.

California prosecutors stressed that Amazon's share of the ecommerce market left third-party sellers no choice but to compromise. Prosecutors cite findings from third-party agencies that show that 74% of American consumers visit Amazon directly when looking for specific products.

It is reported that a key point in this lawsuit is how Amazon displays the products of third-party sellers in the "purchase box", which is a tool that consumers use to confirm their purchase. If it is downgraded in the "purchase box", it will greatly affect the sales of a seller.

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