Amazon’s collusion drove up consumer prices, California says, citing new evidence

By Jonathan Stempel

April 20 (Reuters) – Amazon.com worked behind the scenes with merchants such as Levi Strauss to prod online rivals such as Home Depot, Walmart and Chewy to raise prices for consumers so it would not be undercut, California’s attorney general said on Monday.

Evidence detailing alleged efforts to fix prices was unsealed on Monday, as part of Attorney General Rob Bonta’s 3-1/2-year-old antitrust lawsuit against Amazon. The lawsuit also seeks to recoup what Bonta called ill-gotten profits. A trial is scheduled for January 19, 2027.

“Amazon is illegally working to rake in the profits by making sure consumers have nowhere else to turn to for lower prices,” Bonta said in a statement.

The Seattle-based retailer has said its agreements with merchants are legal and benefit consumers through increased product selection, appropriate stocking and competitive prices. In a statement it maintained that the filing was an attempt by California to “distract from the weakness” of its case.

“Amazon is consistently identified as America’s lowest-priced online retailer,” the company said. “Amazon looks forward to responding in court.”

In its filing in San Francisco Superior Court, California described dozens of cases of alleged price-fixing that boosted prices for goods such as khaki pants, fertilizer, eye drops and dog treats.

Bonta has said the alleged collusion leads merchants and rivals to raise prices or make products temporarily unavailable so Amazon wouldn’t have to price match.

AMAZON SURPASSES WALMART IN REVENUE

The filing described Levi Strauss’ alleged effort to persuade Walmart to charge $29.99 for Easy Khaki Classic pants after Amazon expressed “concern” with Walmart’s original $25.47 price.

California said Amazon’s complaint about lower fertilizer prices prompted Home Depot’s agreement “to raise the prices this time,” while Amazon pushed Allergan, now part of AbbVie, to see if Walmart would charge $16.99 for eye drops so it wouldn’t have to price match at $13.59.

The filing also described Amazon’s alleged effort to break a price match with Chewy, the online pet supply retailer, for Canine Naturals pet treats. “(Prices) that went up on Amazon immediately went up on Chewy,” an intermediary merchant wrote, adding a smiley-face emoji. “Overall this looks like it’s working!”

Amazon is the only defendant. Walmart declined to comment on the lawsuit, but said it always works to keep prices low for customers. AbbVie, Chewy, Home Depot and Levi Strauss did not immediately respond to requests for comment.

Amazon’s revenue in 2025 surpassed that of Walmart, long the world’s largest retailer by revenue.

Bonta is seeking an injunction to stop Amazon’s alleged price-fixing while the case is pending. A July 23 hearing is scheduled.

(Reporting by Jonathan Stempel in New York; Editing by Ethan Smith)