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Thu Apr 28, 2022, 03:30 PM

Amazon Antitrust Suit in DC Should Be Revived, U.S. Tells Judge

Source: Bloomberg

The Biden administration asked a judge to revive a lawsuit by Washington, D.C., accusing Amazon.com Inc. of anticompetitive behavior. The suit was dismissed on March 18 after a Superior Court judge held there was no evidence to support allegations that Amazon’s contracts with merchants inflated prices for consumers.

But the U.S. Justice Department said in a court filing Wednesday that the ruling improperly “blended” two areas of analysis that are crucial for establishing such claims. “If left uncorrected, the court’s ruling could jeopardize the enforcement of antitrust law by improperly raising the bar on plaintiffs challenging anticompetitive contractual restraints in the District of Columbia,” the Justice Department, which isn’t a party to the suit, said in the filing.

Attorney General Karl Racine sued Amazon last year, alleging the online retailer encourages higher-than-necessary consumer prices through policies that guarantee the tech giant a minimum profit on each item sold, while discouraging merchants on the site from offering their products at lower prices elsewhere. Racine has also asked to the court to reconsider its dismissal.

“The antitrust laws and facts are on our side and we are determined to continue standing up for D.C. consumers,” Racine said in a statement on Thursday. “Amazon illegally uses its market power to prevent sellers from lowering their prices on other platforms -- including their own.”

Read more: https://www.bloomberg.com/news/articles/2022-04-28/amazon-antitrust-suit-in-dc-should-be-revived-u-s-tells-judge

Short article. Just heard this on my local news radio station as part of their business report.

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Reply Amazon Antitrust Suit in DC Should Be Revived, U.S. Tells Judge (Original post)
BumRushDaShow Apr 28 OP
bucolic_frolic Apr 28 #1
BumRushDaShow Apr 28 #2
Name removed Apr 28 #3
ck4829 Apr 29 #4

Response to BumRushDaShow (Original post)

Thu Apr 28, 2022, 04:24 PM

1. Don't know if this applies, but I am suddenly questioning hoarding as a profit motive

Companies holding goods, even restricting shipments or order flow, in anticipation of higher prices at a later date.

Sound strategy if you hold goods in a warehouse, and can influence prices to consumers, and have a large share of the market, and can dictate terms to your suppliers (sellers).

Just sayin'.

Where is Theodore Roosevelt when you need him?

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Response to bucolic_frolic (Reply #1)

Thu Apr 28, 2022, 04:44 PM

2. Coming off the pandemic "supply chain issues" and empty warehouses, they often do that initially

although they have so ingrained a "just in time" style of inventory management that I'm wondering if they would be willing to shift from that business model to do what could be something that might prompt a Congressional hearing of purposely "limiting supply" to gouge (and there are states that actually have laws explicitly forbidding it and I expect there will be consumers out there looking for any attempts to do it).

I suppose it depends on the product too because there is only but so much warehouse space (that they would be willing to pay for) and they don't want to be stuck with excess and then have to move it out at a loss.

Right now, they don't even have to do anything because the business media seems to be triggering the price speculation just by doing some (IMHO) bogus "analysis" (in quotes).

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Response to BumRushDaShow (Original post)

Response to BumRushDaShow (Original post)

Fri Apr 29, 2022, 12:08 PM

4. K&R

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