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.
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
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.
I boycott pretty much all the big corporations. I can’t really boycott Amazon because I am in a super rural part of the US and run a small business. Like most small businesses I purchase a lot of random doodads and thingamabobbers from china. Amazons monopoly on the US post office and their logistic network that gets bulk goods from china to my house is hard to live without. They fix more than prices, the whole economy is stacked in their favor. They basically won globalism and it was bad for the globe.
Valves scope is much smaller and less destructive. They keep their customers due to loyalty and the investment into a steam library.
Yeah…
That’s how Amazon worked. At first.
Back then, online shopping kind of sucked, and this little book store company made its so streamlined I got invested.
I didn’t invest because I always thought they would get broken up as a monopoly.
But the point is that Valve could easily be Amazon some day. All these little companies taking their first anticompetitive steps could.
Of course everyone loves them when they’re small, and nice, and growing, until they get so big it’s way too late to do anything about it. But many will still feel loyalty, like they do to Amazon today.
Yea it will be interesting to see what happens to valve in the future. Without antitrust laws anything is possible.
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.
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.
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.
I cannot express enough how angry I am that people still use amazon. Major cringe when friends tell me all the shit they buy on there. I used it 10 years ago a couple times, never once since then. Its shit, slave labor, and enriches billionaires. No one forces you to use it.
Feel free to provide goods to my rural community any time! You can’t believe that poor people have budget consideration and seek the cheapest product?
Use eBay or literally any other site. What is so specific to amazon that you need ? Amazon isn’t even cheaper in many cases if you actually search.
Amazon is cheaper than eBay on every item I’ve looked at in the last 6 months. eBay has robbed me a few times in the last 6 months. What a wild ass suggestion.
Huh, bad luck. I’ve been using eBay for 20 years with maybe 2 issues and they’ve always been resolved.
Companies like Amazon and eBay exist to leverage to post office and their platform for profit. They both do the same thing to the same people.
eBay’s just as fucking bad? They monopolized your post office pricing and fix prices on their market place, they manipulate visibility and charge more for promotions. It’s the same scam with a different name lmao
Well, if you wanna say that, all stores are bad, capitalism is evil, stop buying things and go live in a cave 😁
There is not one store out there that’s not evil, because capitalism relies on exploiting the poor and weak and less intelligent. That’s how it is. Unless you go live off grid in Alaska but guess what you’ll still have to import products made with slave labor.
Again, Lemmy being angry because we aren’t perfect. Using eBay or a small store instead of amazon is astronomically better than buying your funko pop collection on amazon.
Amazon hosts small stores too. Most small stores exist on both. They also host half the internet and government contracts so they don’t care if you use eBay. Your tax dollars use Amazon. Their beyond your reach as a consumer but not an educated citizen
It’s cringe because it’s affordable and convenient? Whenever I buy something from there I always price compare online and it’s the cheapest hands-down. Some people don’t have the luxury of constantly considering geopolitics and large-scale repercussions when they’re just simply trying to get by.
It super depends on what you’re buying. Personally, I just go without in order to avoid them. The only things I ever buy from Amazon are things I cannot find anywhere else that I need to have, such as water filters for the lead pipes in Montréal.
We don’t have the luxury to ignore how bad Amazon is. Amazon is aware of this and does everything it can to force you to buy from them by under cutting other businesses until competition dries up. Every time I can buy something for a little bit more and skip Amazon that’s a huge a win for everyone from the original supplier, the more local store selling it, and the working class in general.
Edit: Reading and writing more comments, I’m gunna find a way to get those filters from elsewhere even if they cost a bunch more.
No bro water filters from Amazon are unethical, please expose yourself to lead because some guy on lemmy is virtue signaling /s
I cannot tell what side of the argument you’re trying to be on here, gunna be real hokest with ya.
I mean what I said. I also buy water filters from Amazon because I suck water straight from the ground. Some times the water is yellow and needs to be filtered.
Did you miss the part where I said I’d be looking for filters elsewhere even if they cost a bunch more?
I think personal safety is more important than virtue signaling. You should have used your political power to regulate it before it became a critical service in communities. I hate Amazon, yet I am dependent on it. I come from the side of nuance. You want to handle Amazon you monopoly bust it. Boycotting won’t help.
I have always voted progressive, never even centrist. I live in Canada, also, but yea I don’t actually make the rules but the people I vote for to make said rules don’t like Amazon either.
That’s my only point it doesn’t matter if there’s a group of consumers boycotting them if the government doesn’t listen to those constituents. Amazon is a political problem not a consumer problem.
I’ve been telling people to stop supporting amazon for years, but everyone seems to have their reason to keep supporting them. This hopefully will be a good enough reason for people to finally stop shopping on amazon.
I haven’t bought anything from amazon in over 12 years. I find everything on the manufacturer’s website or eBay. No need to ever use amazon for anything.
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Your point is valid and definitely a concern.
But how are people so basic.
You hate Amazon, but just have to have your caramel syrup? Doesn’t really sound like hate.
Sounds more like you do not want to have to make sacrifices to the things you like.
Wonder why bad things continue to happen.
I use Amazon too. Not trying to be too judgy, but come on. Accept some personal responsibility for your actions.
$1000 says you’re, at best, a college kid. Probably a teenager.
Why? People with actual life experience in this shitty system don’t make the personal responsibility argument because they’ve lived enough to know that’s bullshit.
Companies like Amazon can’t exist if people don’t buy from them. The fact that you think people have to buy from them is the problem.
No one has to spend their money with Amazon. There’s always going to be a personal responsibility aspect when people willingly do something they know is wrong.
How about… you do what you want with your own money and let other people do the same?
I do. It’s just the claim that people aren’t personally responsible for where they choose to spend their money is preposterous.
Yeah, free will sucks like that…
