Amazon's antitrust lawsuit was dismissed by a DC court.
The suit took aim at Amazon's ability to penalize third-party sellers on its platform for charging lower prices on their own websites.
An antitrust complaint against Amazon was dismissed by a court, which sought to limit the e-authority tailer's
to penalise third-party merchants on its platform for charging lower rates on their own websites.
The suit, brought on behalf of the District of Columbia by DC Attorney General Karl Racine in May,
Claimed that Amazon had too much power over how much independent vendors can charge for their items, causing prices to rise and injuring consumers.
According to The Wall Street Journal, a DC Superior Court judge granted Amazon's motion to dismiss on Friday.
According to The New York Times, court papers don't specify a rationale for the dismissal, but Law 360 reports that the court found a lack of evidence that Amazon's practises lead to increased costs.
Racine's office reacted angrily to the dismissal, stating that it is evaluating legal alternatives.
Racine's office issued a message to media outlets saying, "We believe the Superior Court got this wrong." "Its oral ruling did not appear to take into account the complaint's specific allegations,
the entire nature of the anticompetitive agreements, the substantial briefing, or a recent federal court decision allowing a nearly identical litigation to proceed."
In 2019, Amazon dropped a contract clause that specifically forbade third-party merchants from charging cheaper rates outside of Amazon.
However, according to the lawsuit, a similar provision effectively kept the limitation in place.
According to Inc., third-party sellers whose products can be obtained for less outside of Amazon may lose the "buy box" button on their listings,
which allows shoppers to buy items with a single click. They may also lose their ability to sell.
"Like any store we reserve the right not to highlight offers to customers that are not priced competitively," an Amazon spokesperson said when the suit was filed.
"The relief the AG seeks would force Amazon to feature higher prices to customers, oddly going against core objectives of antitrust law."
Racine, on the other hand, suggested that third-party sellers who hiked their prices on Amazon to cover the e-cut tailer's.....
would be forced to raise prices elsewhere or risk having their Amazon rights revoked.
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