Internal emails and court documents reveal that Amazon used tactics to coerce suppliers into raising prices on competitor sites like Walmart and Target, according to a California lawsuit. The documents, examined by the Guardian, show Amazon flagged low prices on rival sites as threats to its profitability and threatened to cut suppliers' sales unless they raised prices elsewhere.
For instance, a Maxi-Matic ice-cream maker listed at $17.99 on Amazon and Best Buy was made unavailable on Amazon. The supplier then pulled its product from Best Buy, and Amazon relisted it at $59.99. Similarly, Chefman's air fryer rose from $84.99 to $149.99 on Newegg after Amazon suppressed its sales and demanded compensation for price-matching competitors.
California Attorney General Rob Bonta alleges these practices amount to price-fixing. Amazon denies the claims, stating it works to lower consumer costs. Supplier executives, such as Chefman's Mark Friedman, declined to comment, citing fear of retaliation.
The lawsuit, partially unsealed in recent months, includes depositions and internal records detailing how Amazon forced suppliers to pay hundreds of thousands in reimbursement for lost revenue from price cuts, prompting them to increase prices for rival retailers.
