According to a New York Times report, an antitrust action filed by Attorney General Karl Racine of the District of Columbia headed to court on Friday.
Amazon’s move to dismiss a lawsuit filed by Washington DC Attorney General Karl Racine last year was approved by Judge Hiram Puig-Lugo of the Superior Court of the District of Columbia.
Allow Amazon to dismiss the complaint. Allegations that e-commerce platform Amazon engages in anticompetitive behavior by blocking third-party sellers from offering lower prices for their products on other platforms, such as websites. Court records viewed by the NYT do not say why Judge Puig-Lugo decided to dismiss the lawsuit.
According to the attorney’s office: “We believe that the Superior Court got this wrong. Its oral ruling did not consider the detailed allegations in the complaint and a recent decision of a federal court to allow a nearly identical lawsuit to move forward.” The joint spokesperson said the office is exploring its legal options in an emailed statement.
The “nearly identical” complaint Geller refers to is a class action lawsuit against Amazon for similar reasons, in which the firm is accused of forcing sellers to sell things for the same or less than they’re asking for. Earlier this week, Seattle District Judge Richard A. Jones partially dismissed Amazon’s motion to dismiss the complaint.
Racine’s complaint, which was first filed in May 2021, is based on the same claim. Allegations of Amazon’s restrictive policies harm consumers by forcing sellers to increase their prices on Amazon and other online platforms, as sellers have to charge Amazon fees when pricing their products. In 2019, Both cases claimed that the same limits apply to shoppers. Amazon’s Fair Price Policy was used to determine the price. Despite Amazon quietly withdrawing a rule requiring merchants to offer the cheapest products on their marketplace.
In contrast, Amazon says that placing price restrictions on merchants is standard in the retail industry and lawful. Amazon further noted that if the lawsuit is successful, customers will suffer.
Racine’s office said it was considering appealing the decision.