California Exposes Amazon's Alleged Plot to Rig Prices Nationwide

California Attorney General Rob Bonta on Monday unsealed a 19-page memo in a 2022 antitrust lawsuit against Amazon, alleging the Seattle-based retailer illegally pressured vendors to manipulate prices on competitors' websites.[1][2][3] The filing claims Amazon, which controls about 50% of U.S. e-commerce, leveraged its dominance to ensure rivals like Walmart, Target, Home Depot and Chewy matched or exceeded its prices, affecting categories from home decor and garden products to pet care.[2][3][4] A stark example involves Levi Strauss & Co. khaki pants listed at $25 on Walmart.com. Amazon emailed Levi's links to the lower prices, expressing hope they would "get resolved over the next few days." The next day, Levi's confirmed it had convinced Walmart to raise the price to $29.99.[1][2][5] Similar incidents implicated Hanes and others, with Amazon threatening promotion restrictions, product delistings or financial penalties for noncompliance.[3][4] Bonta described three core tactics: directing vendors to demand price hikes from rivals; temporarily breaking price matches to lock in higher rates; and in some cases, pulling lower-priced products from competitor sites entirely.[4] "Amid a crisis of affordability, Amazon is illegally working to rake in profits by making sure consumers have nowhere else to turn to for lower prices," Bonta stated in a press release.[1][4] He seeks an immediate injunction, with a hearing set for July 23, while the full trial is slated for January 19, 2027, in San Francisco Superior Court.[2][3] Amazon dismissed the motion as a "transparent attempt to distract," but faces mounting scrutiny in multiple antitrust battles that could force a breakup of its retail operations.[3] Bonta emphasized Amazon as the scheme's origin but reserved options to pursue vendors and retailers.[2] The case underscores broader concerns over Big Tech's pricing power as U.S. consumers grapple with elevated costs.