California Attorney General Rob Bonta last night filed a request for a preliminary injunction in California’s existing case against Amazon for price fixing. Attorney General Bonta’s 2022 lawsuit alleged that the company stifled competition and caused increased prices across California through its anticompetitive policies in order to avoid competing on price with other retailers. New evidence paints a clearer and more shocking picture. The motion for a preliminary injunction comes after a robust discovery process where California uncovered evidence of countless interactions in which Amazon, vendors, and Amazon’s competitors agree to increase and fix the prices of products on other retail websites to bolster Amazon’s profits. Time and again, across years and product categories, Amazon has reached out to its vendors and instructed them to increase retail prices on competitors’ websites, threatening dire consequences if vendors do not comply. Vendors, bullied by Amazon’s overwhelming bargaining leverage and fearing punishment, comply — agreeing to raise prices on competitors’ websites (often with the awareness and cooperation of the competing retailer), or to remove products from competing websites altogether. Amazon’s goal is to insulate itself from price competition by preventing lower retail prices in the market at the expense of American consumers who are already struggling with a crisis of affordability.
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So the fine for price fixing is $100M and Amazon is worth $2 trillion so that’s like 20,000x bigger than the fine. I think they will survive this one gang
Amazon NUTTED 🤤🤤🤤🤤🤤
👏🏻 We 👏🏻 demand 👏🏻 public 👏🏻 executions 👏🏻
BREAKING NEWS!!
Evil company known for being evil is caught doing evil things!
Nothing will change until there’s jail time for executives.
New evidence shows Amazon, its vendors, and competing retailers are price fixing, hiking up prices for consumer products and making Amazon richer and richer
So, jail time it is for Jeff Bezos, right?
But but but capitalism, free market, competition, etc. etc. etc …
You can stop buying from Amazon whenever you choose to. There are online alternatives to every product they sell. You don’t need to be part of it. Whatever excuse you give is wrong.
I’ve pointed out Valve doing basically the same thing; games can’t be priced lower than Steam on competing game storefronts (not Steam key resellers), or Valve will threaten to delist your game. Which would be essentially kill it. And they obviously do this to protect their chunky store fee.
But personal loyalty goes a long way.
I’m trying to reframe the perspective here, not drag into an argument about Valve. A whole lot of people feel good about finding “deals” on Amazon, about Amazon services that have helped them, and especially about the value and convenience the whole platform provides. It’s easy for Lemmy to hate on Amazon, but for the average person, I think this is a harder sell than most of us realize. They’ll dismiss it as the “market working” or California sensationalism or, more likely, just filter it out as noise in their feed, just like most PC gamers would when they read something bad about Valve.
The issue I’ve had with the “Just shop somewhere else. Don’t use Amazon” is that it’s very US-specific response. Amazon has absolutely dominated the online shopping space in Canada for years because they are one of the few companies that dealt with the biggest reason why shopping online in Canada has been difficult: Shipping. $20-$40+ domestic shipping fees are normal in Canada for most other retailers which means you could be paying double the cost of your order (or more) just on shipping alone, so as soon as Amazon came in and offered free coast-to-coast shipping they had basically won the market instantly. There were teething issues, of course, and their earlier shipping contractors were horrendous but they did smooth most of that out.
Nowadays they still have very little competition that can beat them on shipping, but there are more and more options popping up. There are some Canadian online stores that offer free shipping or free if over a certain reasonable amount. The COVID pandemic really pushed a lot of local retailers to set up affordable online ordering and delivery systems for local customers, so that has also become an option. Aliexpress has also greatly improved their free shipping process to Canada and considering most of what Amazon sells is just rebranded Aliexpress stuff, it’s a great way of getting the same items for cheaper if you’re ok waiting a few extra days. So most of my online purchases these days have been a mixture of Canadian retailers and Aliexpress.
Busted? It’s well know Amazon price fixes across the economy and forces sellers to charge for the product, plus the listing fees to get on the first two pages of searches , now creeping up to 40%.
All these comments reminded me why we got the personal responsibility to recycle plastic, and the corporations got more incentives to produce and consume plastic. All you tankies need to take responsibility for your voting habits and get out of poor people’s spending habits. You sound like the capitalists. Cut the avocado toast out and the world will change.
There was a time when Amazon was not full of scummy rip-off products, when it was not playing games with prices, when it was not a cloud-computing powerhouse, and you know what happened?
That’s right, they crushed their adversaries (retail shopping) and earned billions in profits. They won.
But somehow that’s not enough winning, there isn’t enough winning until all the value has been vacuumed up from the world.
Bezos explicitly undercut the competition for years to drive all of the competition out of business. Amazon took as much time from 1997-2016 to make as much profit as they did in 2017, which is also (not) coincidentally when they hit peak market saturation and were able to start raising their prices.
So what you’re talking about was real, but it wasn’t like, “back when Amazon was good”, they were just preparing for what they are now. Having a huge monopoly on just about everything has always been their win condition, and they’re no where near done winning.
Yeah. It’s the same thing Uber did with pushing cab services out of business.
Not only that, but AWS is the real money maker for them. Not that retail and gaming and prime and whatever don’t also make boat loads of cash, but it doesn’t even graze AWS. The scale of these data centers is unreal and most of the internet runs on AWS.
I’m an industrial electrician with background on what they’re ordering and installing in terms of control panels and if you saw the weekly shipments it’d make you sick. And we’re only one supplier, they have others.
I think it’s worse because Bezos (ex-wallstreet) had his buddies at Bain Capital short-and-distort competing companies into bankruptcy, which has the added bonus of clearing the tax burden from the gains on those shorts.
And that is why I no longer buy anything from them. I’m just embarrassed it took me as long as it did to realize what they were really doing.
The frustrating thing is we can’t boycott AWS since so many of the sites we use run on it. But yes, we absolutely shouldn’t buy things through Amazon or any of the other web stores Amazon owns.
we absolutely shouldn’t buy things through Amazon or any of the other web stores Amazon owns.
I try to use eBay as an alternative, though i find every 3-4 orders i place there, i get one in an Amazon box that by all rights appears to have been shipped by Amazon. I swear people are drop-shipping stuff from Amazon to their eBay buyers.
They are. If it has free returns and thousands of feedback it’s probably a drop shipper. Return it and use the eBay label it ends up costing them money.
Go figure the margins are that thin.
They are doing exactly that for a sometimes hefty markup. I got something like that with a gift receipt, so ultra lazy, looked up the item and it was $11 cheaper. Like that totally defeats the purpose of going elsewhere.
I reported the seller then returned it.
I have often wondered whether targeted internet boycott days would shake up AWS, but I don’t know enough about their billing structure to run the numbers to see how much that would dig into AWS profits + how much of their income is flat subscription fees vs. billing on number of calls and haven’t had a chance to dig into it yet.
The government, use the government. It’s our last chance to use the government to regulate corporations before they become the government
I am a big believer in regulation, and some governments right now are in a position where they can be pressured to take anti-monopoly action against Amazon, which I want very much to see. Being in the U.S. as I am right now, though… There are some state governments I would like to see act (and shout-out to California for doing so here), but I am also brainstorming other nonviolent disruptive action which could be taken, because the federal government right now is actual fascists and Amazon is in league with them.
I was hoping last years shenanigans would have pushed Europe away from our tech companies. I don’t see much hope unless we can elect a new Congress that is willing to do Monopoly busting across the board.
You would basically have to convince a few hundred million people to not use the internet for months at a time with out a single percentage of them breaking the boycott to actually even start to hit aws.
Countless things have to start failing before aws even starts to feel it since it’s not a consumer product. You basically have the drive all the companies using it to near bankruptcy so they can’t afford to pay for aws anymore.
Frustrating, but I appreciate your answer; thank you.
Use vercel instead
/s
AKA the Walmart method.
Walmart didn’t even touch amazon on this. There were articles for years about how mind boggling (and the articles were praising, not even critical of) it was that amazon’s investors were content to let bezos run amazon on a net zero or even negative profit model. I don’t think I’ve ever heard of walmart not pulling a profit.
You can’t really compare online book retailer Amazon to global online marketplace Amazon. Your underlying point is still mostly correct, but I would exclude the years that they were primarily focused on books. From my lived memory they didn’t really become the online retail juggernaut until a few years after the launch of Prime. Free shipping turned them into what it is today. So maybe the best comparison would be from like 2006-2016? Or maybe I’m wrong and the distinction isn’t necessary. Idk. I’m just trying to foster conversation
Yeah, I remember Amazon the book store. I still had my mom take me to the local bookstores, cause I knew them and the people, so I was comfortable lol. I remember when Prime launched. I don’t think anyone was expecting that, at the time. Free 2-day shipping on so many products was insane. And all for $89?/yr? Especially, when everywhere else online charged anywhere from $5-10. It was truly the Walmart of the online world. They ate shipping costs, which killed them, and put hurt their competition until AWS became such a powerhouse and they had a monopoly on online marketplaces.
That’s what’s crazy to me, they survived the dot com crash and were so diversified that I have no idea how they stayed afloat. I would think that all of the combined expenses across all of their ventures without a true cash cow would sink them. Instead they survived and became the trash heap of consumer rights violations that they are.
The reason Amazon survived is because they WEREN’T running a dozen different ventures. They were an online bookstore and people kept buying books. Amazon benefited from the crash because that was when they started buying up servers to build AWS. Prime was just free 2 day shipping on books when it launched.
Ehhh not really. They operated at massive losses for a decade or more to eliminate the competition while growing their customer base. This is simply stage 1 of enshittification. You can only do this if you’re unbelievably filthy fucking rich. Then at some point they needed to cash out on all the good will and reputation they developed and that brings us to the shithole economy of today where people are simply too lazy to shop anywhere else.
The other commenters here are right about Amazon’s initial methods, but I’m also going to highly recommend Cory Doctorow’s Enshittification for a detailed explanation of how this happens (including a breakdown on Amazon specifically) and what to do about it.
To quote a favorite singer of mine,
You could fill a man with gold, and still have room for greed.
It’s easy to crush the competition when you purposely take a loss as an investment in future market share.
They’re BUSTED when someone goes to prison.
For now they’re just SLAMMED
Just wait until they get BLASTED in a strongly worded email.
Well, it’s California’s attorney general, so better than even chance for actual punishment.
“Europeans need to be harder on Amazon” Wags greased finger
Bezos was a hedge fund manager. This should surprise nobody.
Bezos was a Senior VP by the age of 30, working for D.E. Shaw, and was a rumored heir for taking over the business after he retires. Bezos would have made billions and managed a major hedge fund. Set for life.
But that was not enough for him, he wanted to hoard hundreds of billions of wealth instead, so here we are. How perfectly healthy and in no way a mental illness.
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I think it was pretty obviously sarcasm
It was not. Poe’s Law.
They’re a complete stranger, and there are actual people who unironically say stuff like that, even on the Fediverse.
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It’s pretty obviously a troll account.
Poe’s law strikes again
When you’re not sure check their overview. That one was obviously sarcasm.
Yourself though, you’re angry and reactionary so it tracks.
Their post history reveals them to be kind of a jerk. If it was an attempt at sarcasm it was a poor one.
yall are exhausting. Hate it or don’t but move on. Nobody wants to check post history
Lol, these mods are a joke.
