Amazon Accused of Orchestrating Market-Wide Price Hikes in California Antitrust Case

California Attorney General Rob Bonta has released evidence alleging that Amazon pressured prominent vendors, including Levi Strauss & Co and Hanes, to inflate prices on rival marketplaces such as Walmart and Target. The documents, part of a 2022 antitrust lawsuit, claim Amazon used its dominant market position to artificially maintain high prices across the internet. The state argues that Amazon's influence over vendors forces them to align pricing across the web to avoid penalties on the Amazon platform. Specific examples cited in the filing include Hanes increasing prices at Target and Walmart after Amazon flagged lower listings. Similarly, the medical products company Allergan reportedly raised the price of its eye drops to $16.99 to regain visibility on Amazon after being suppressed for offering lower prices elsewhere. Amazon currently controls approximately 50% of the U.S. e-commerce market. Third-party sellers, who account for over 60% of goods sold on the platform, often fear losing the 'Buy Box'—the primary purchase button that drives an estimated 80% of the company's total sales. The Attorney General contends that this mechanism is used to 'strong-arm' vendors into price-fixing. While Amazon disputes the claims, calling the motion a distraction from a weak case, the legal pressure is mounting. This action complements a 2023 FTC lawsuit and previous challenges from Washington, D.C. and European regulators. The California case is scheduled for trial in 2027, with the state seeking the appointment of an independent monitor to oversee Amazon's compliance.