Amicus Brief - DC v. Amazon
FOR IMMEDIATE RELEASE: January 30, 2023
CONTACT: Sandeep Vaheesan, Vaheesan@openmarketsinstitute.org
“In dismissing the District of Columbia’s complaint, the Superior Court judge ignored the law and disregarded Amazon’s control of online commerce.”
WASHINGTON-The Open Markets Institute today filed an amicus brief in District of Columbia v. Amazon.com Inc in support of the District’s appeal. The District alleges that Amazon uses its monopoly power to prohibit sellers and suppliers from offering better prices on their very own sites and rival platforms, even though Amazon charges high fees and commissions.
“In dismissing the District of Columbia’s complaint, the Superior Court judge ignored the law and disregarded Amazon’s control of online commerce,” said Open Markets Institute Legal Director Sandeep Vaheesan. “Through most-favored nation and other similar trade restraints, Amazon has used its dominance of online retail to stunt the growth of rival platforms, coerce its sellers and suppliers, and perpetuate its power. As a result, Amazon continues to extract an effective tax as high as 40% on some goods sold on its site and to raise prices for consumers on other retail channels.”
The brief argues that the Superior Court judge who initially dismissed the District lawsuit is wrong on the law.
“Despite being presented detailed allegations of Amazon’s power and unfair competitive conduct, the Superior Court dismissed the District of Columbia’s amended complaint. The court, among other errors, held that only a firm with a 100% share of a market has monopoly power. This is not the law. Courts have found that firms with 60% or 70% of the market can have monopoly power and are thereby subject to special rules under the antitrust laws,” the brief reads.
In a statement of interest supporting the District of Columbia in the Superior Court, the Department of Justice Antitrust Division made similar points and warned that the dismissal could put other, closely related antitrust enforcement actions at risk.
Read the full amicus brief below or download here.
Open Markets has published extensively about the illegal and deceptive business practices Amazon uses to extend its monopoly power, squash its competitors, and squeeze its workers and replace workers with contractors in order to maximize profit, including two major reports: “Eyes Everywhere: Amazon’s Surveillance Infrastructure and Revitalizing a Fair Marketplace” (2021) and “Eyes Everywhere: Amazon’s Surveillance Infrastructure and Revitalizing Worker Power” (2020).
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The Open Markets Institute is a team of journalists, researchers, lawyers, economists, and advocates working together to expose and reverse the stranglehold that corporate monopolies have on our country. Learn more at www.openmarketsinstitute.org.