Saturday, October 16, 2021

Amazon is in legal trouble as a result of monopolistic behavior against independent merchants

Over recent years, the general attitude of many large companies has shifted, especially those technology ones, and the most important problem: monopolistic behavior. It started at the turn of the millennium with cases against Microsoft, but it is directed towards many other companies now. After the global prosecutions of Google, Facebook, and even Apple, it appears that Microsoft is in trouble right now. And unlike other cases, matters appear favorable to the plaintiffs against the company in the first place.

This time the lawsuit is not coming from competitors or independent vendors on the platform, but the plaintiff is the US government. The lawsuit centers on the fact that Amazon is making online shopping more expensive for buyers due to its monopolistic behavior. The idea of ​​the claim is based on the following points:

Until 2019, sellers on Amazon were required to sell their products at the same price or higher on other platforms under the penalty of prohibition.
After that, sellers can determine the price they want, but when they set a cheaper price outside of Amazon, they are punished by burying their products in the search results so that they do not get buyers from the Amazon platform.

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