California Files Antitrust Lawsuit Against Amazon

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The Facts

  • On Wed., Calif. Attorney General Rob Bonta filed a complaint against Amazon in San Francisco Superior Court accusing the retail giant of harming competition by forcing third-party sellers to commit to so-called 'price parity'.

  • According to Bonta, the company has long abused its dominant position to distort the market. This was allegedly done by inflating prices to consumers and penalizing merchants that offered goods at lower prices.


The Spin

Pro-establishment narrative

The backlash against big tech companies is ratcheting up, and this lawsuit might have the teeth to do damage to Amazon. California has stricter laws about unfair competition and other anti-trust violating practices than the federal government. A victory in California could set the tone for other states to pass similar laws.

Establishment-critical narrative

This antitrust lawsuit against Amazon is part of a broader political campaign to punish tech giants for their success and to expand the power of government bureaucrats. Yes, the market isn't perfect, but it's not a coincidence that these companies have prospered while operating in a loosely regulated sector.


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