An antitrust lawsuit filed by the District of Columbia against Amazon has been revived by a federal appeals court after a lower court's decision to dismiss the complaint was overturned. The District of Columbia Court of Appeals ruled that the Superior Court trial judge had set too high a bar for the district's complaint, which contained sufficient facts to survive Amazon's motion to dismiss the case.
The lawsuit, initiated in 2021, alleges that Amazon engaged in anticompetitive practices in its treatment of third-party sellers who conduct most of the sales on the company's online shopping platform. The complaint accuses Amazon of inflating prices for consumers and stifling innovation through contract provisions that restrict sellers from offering their products at lower prices or on better terms on other platforms.
In response to the revived lawsuit, an Amazon spokesperson stated that the company disagrees with the allegations and looks forward to presenting evidence in court to demonstrate the benefits of its policies for consumers. The spokesperson emphasized that Amazon aims to provide competitively priced offers to customers and does not promote deals that are not in the best interest of consumers.
The Superior Court judge had previously dismissed the lawsuit, stating that sellers were free to set their prices and that the district's claim of Amazon's practices leading to higher prices was deemed as conclusory. However, the District of Columbia appealed the ruling, leading to the recent decision by the appeals court to allow the case to move forward.
District of Columbia Attorney General expressed determination to continue fighting against what he described as Amazon's unfair and unlawful practices that have resulted in higher prices for consumers in the District and hindered innovation and choice in online retail. In addition to the D.C. lawsuit, Amazon is also facing an antitrust case brought by the Federal Trade Commission.
