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Amazon launched a price-fixing investigation Wednesday by the Washington State attorney general’s office and agreed to pay $2.25 million, ending a program that gave it control over the prices of products provided by third-party sellers in its market.
The lawsuit focused on a program the Seattle-based company launched in 2018 to allow sellers to use its pricing algorithm. Called Sold by Amazon, the program guarantees sellers a minimum price, offering a potential plus if the algorithm determines that customers are willing to pay more.
The attorney general’s complaint said the algorithm harms consumers in part because it sets the minimum price as a “floor” that Amazon offers to customers, “meaning that participating sellers have limited ability to lower the price of their products, if any, without withdrawing them.” taken from the “product” program.
Amazon spokesperson Glenn Kuper said in a statement that the effort was “small” and meant “providing another tool to help sellers offer lower prices.” “I’m glad this issue has been resolved,” Amazon said, as the company believes the program is legit. Amazon discontinued its Sold by Amazon offering in 2020 and has pledged not to offer it again under the deal.
In a statement announcing the deal, state attorney general Bob Ferguson said it “encourages product innovation and consumer choice, and makes the market more competitive for vendors in Washington State and across the country.”
Amazon faces intense pressure in the United States and abroad for its business practices. The Federal Trade Commission has launched an investigation into the company and is considering whether to approve its purchase of the MGM movie studio. European regulators brought own antitrust fees Against Amazon in 2020, saying it takes advantage of small merchants using its market.
Last week, a Senate committee advanced legislation This may prevent Amazon from preferring its own products to those of other sellers on its site. The company aggressively tackled the bill by sending legislators to meet with lawmakers and claiming that legislation could force foreign traders to stop reaching their customers.
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