Key facts
- A California judge indicated he was likely to deny a request to block Amazon from allegedly fixing prices.
- The state's Attorney General, Rob Bonta, sued Amazon in 2022, alleging anticompetitive practices.
- Evidence suggested Amazon pressured brands like Levi Strauss and Hanes to encourage rivals like Walmart and Target to raise prices.
- The judge expressed skepticism about the state's evidence, citing its reliance on 2023 data.
- The case is scheduled for trial in January.
A California judge indicated on Thursday that he was likely to deny a request to block Amazon from allegedly fixing prices by pressuring rivals to raise their prices. This ruling represents a setback for California Attorney General Rob Bonta's case against the online retailer.
Bonta sued Amazon in 2022, accusing the company of using its dominance in online retail with anticompetitive tactics that ultimately increase prices for consumers. In April, Bonta's office stated it had uncovered evidence showing Amazon had obtained commitments from brands, including Levi Strauss, Allergan, and Hanes, to encourage online competitors such as Walmart and Target to increase their prices. The goal, according to the state, was to prevent Amazon from being undercut.
Judge Ethan Schulman of San Francisco Superior Court expressed skepticism at a hearing on Thursday, noting that the state's request relied on evidence from 2023. He tentatively ruled to deny the request, though a final decision is pending the conclusion of the hearing.
A spokesperson for Bonta acknowledged the ruling was disappointing but stated the office looks forward to the trial. "We continue to believe that Amazon’s ongoing price fixing behavior is harming California consumers," the spokesperson said. The case is currently scheduled for trial in January.