Internal emails show how Amazon raises prices across the Internet, lawsuit says

Super King

Ars Praetorian
472
Subscriptor
1000010641.gif
 
Upvote
60 (70 / -10)

demonbug

Ars Scholae Palatinae
809
Subscriptor
Don't worry, even if Amazon is found guilty it won't matter. Soon enough they will just "encourage" their suppliers to use a favored AI platform for pricing across the board, and miraculously prices will go up everywhere. Collusion without the paper trail - just another benefit of using ClaudePrime, Amazon's preferred pricing engine!
 
Upvote
84 (85 / -1)

Robin-3

Ars Scholae Palatinae
1,176
Subscriptor
Bonta is hoping this evidence will help California secure a preliminary injunction blocking Amazon from any price-fixing while the trial proceeds.
... wait, do I understand correctly that they're seeking a preliminary injunction to block Amazon from doing something illegal while the trial proceeds? Or is price-fixing itself not always illegal, and the question here is whether the price-fixing in question is the illegal kind?

If my initial understanding is right, does anyone have enough legal knowledge to comment on whether that's as bizarre as it sounds? ("Your Honor, we maintain that Mr. X has been embezzling. As such, we would like a preliminary injunction blocking him from doing any more embezzling while this trial proceeds." "Objection! If Mr. X can't embezzle, he'll have no livelihood at all.")
 
Upvote
78 (78 / 0)

Chuckstar

Ars Legatus Legionis
37,296
Subscriptor
Don't worry, even if Amazon is found guilty it won't matter. Soon enough they will just "encourage" their suppliers to use a favored AI platform for pricing across the board, and miraculously prices will go up everywhere. Collusion without the paper trail - just another benefit of using ClaudePrime, Amazon's preferred pricing engine!
Oh… like apartment rents. ;)
 
Upvote
55 (55 / 0)

Chuckstar

Ars Legatus Legionis
37,296
Subscriptor
... wait, do I understand correctly that they're seeking a preliminary injunction to block Amazon from doing something illegal while the trial proceeds? Or is price-fixing itself not always illegal, and the question here is whether the price-fixing in question is the illegal kind?

If my initial understanding is right, does anyone have enough legal knowledge to comment on whether that's as bizarre as it sounds? ("Your Honor, we maintain that Mr. X has been embezzling. As such, we would like a preliminary injunction blocking him from doing any more embezzling while this trial proceeds." "Objection! If Mr. X can't embezzle, he'll have no livelihood at all.")
The actual requested injunction goes beyond just saying that Amazon would be barred from price fixing. Here’s the full text:

That Amazon be enjoined from agreeing with its vendors and non-Amazon retailers to set, fix, control, maintain, stabilize, and/or tamper with retail prices for the vendors’ products at any non-Amazon retailer.

That Amazon be enjoined from:

-agreeing with a non-Amazon retailer, through their common vendor, to break a price match on a product to increase the retail price;

-coercing, requesting, or agreeing with a vendor to act as an intermediary to break a price match with a non-Amazon retailer;

-agreeing with a non-Amazon retailer, through their common vendor, to increase the retail price of a product on a non-Amazon retailer;

-coercing, requesting, or agreeing with a vendor to act as an intermediary to increase the retail price of a product on a non-Amazon retailer; and

-coercing, requesting, or agreeing with a vendor to make a product unavailable on a non-Amazon retailer so that Amazon can increase the retail price.

That Amazon be prohibited from communicating with vendors—whether by phone, in person, or by email, chat, text, or other electronic means—concerning:

-The price of a vendor’s product(s) at any non-Amazon retailer;

-Amazon’s matching of the price of a vendor’s product(s) at any non-Amazon retailer;

-Sales and/or promotions affecting a vendor’s product(s) at any non-Amazon retailer; and

-Whether to remove or withdraw a vendor’s product(s) from any non-Amazon retailer.

That Amazon be prohibited from requesting that vendors pay Amazon money because Amazon is price matching a lower retail price on a product offered by a non-Amazon retailer.

That a monitor be appointed to oversee and enforce Amazon’s compliance with the above injunction.
 
Upvote
40 (40 / 0)
I cant see this going anywhere, limiting Monopolies is very damaging to shareholder value.

When was the last time Antitrust was actually pursued and had meaningful reform? Hopefully this will be the start. Walmart, Google, Microsoft, Apple App Store etc etc etc are all based on gaining monopoly power.
 
Upvote
12 (12 / 0)
A few years ago, I wanted to order something from Office Depot. The price the company’s website seemed a bit high, so I checked the price on Amazon. It was much lower even though the Amazon listing showed that the item was sold by and fulfilled by Office Depot. I went ahead and ordered it through Amazon, and sure enough, it arrived in an Office Depot box with an Office Depot packing slip inside. I’ve found the same price difference at times since then. This sounds like the same sort of nonsense described in the article.
 
Upvote
34 (34 / 0)

dinglehopper

Seniorius Lurkius
47
Subscriptor
Guys - this happens more often than you think. Amazon is just the biggest target for scrutiny.

Collusion is incredibly widespread. Especially in the 'move fast and break things' tech industry.

But good luck stopping it. The feds dont care.
The unwillingness of our political leadership to change things is not sufficient reason for apathy. It is, in fact, quite the opposite.

Share this information, complain to your Congress critters, vote based on their actions, and look for alternatives to Amazon whenever you shop. You are not powerless. Even if your influence is small, it is finite. Every integral is the sum of infinitesimals.
 
Upvote
35 (35 / 0)

clewis

Ars Tribunus Militum
1,773
Subscriptor++
I cant see this going anywhere, limiting Monopolies is very damaging to shareholder value.

When was the last time Antitrust was actually pursued and had meaningful reform? Hopefully this will be the start. Walmart, Google, Microsoft, Apple App Store etc etc etc are all based on gaining monopoly power.
Which is what's wild. Breaking up monopolies actually increases shareholder value. I just takes a bit longer than a quarter.
 
Upvote
15 (15 / 0)

mrfixitx

Seniorius Lurkius
38
Subscriptor
This is similar to how Pepsi makes sure that anyone selling their product below Walmart prices suddenly stops receiving discounts or has to pay a higher wholesale price. All to make sure that Walmart has the lowest prices. Pepsi actively price checked other grocery stores prices to see who needed to have their discounts taken away or their wholesale prices raised.

It is so infuriating that even when you chose to shop local or shop at regional chains is that the biggest retailers are working with manufactures/vendors to ensure that those smaller shops or regional chains cannot offer lower prices.
 
Upvote
36 (36 / 0)

nimble

Ars Scholae Palatinae
856
Subscriptor
I cant see this going anywhere, limiting Monopolies is very damaging to shareholder value.

When was the last time Antitrust was actually pursued and had meaningful reform? Hopefully this will be the start. Walmart, Google, Microsoft, Apple App Store etc etc etc are all based on gaining monopoly power.
Worst comes to worst, John Roberts will just have to protect those poor corporations from any harm via the shadow docket again.
 
Upvote
12 (13 / -1)

just another rmohns

Ars Scholae Palatinae
1,403
Subscriptor++
I would say it's well past anti-trust time, but we all know the current regime is pro-trust (if that's a word).
It's not just the current regime. It's how the US legal system has been trending for decades. It started in the 1980s:

b4c37242-831a-4f85-9909-577ff6ba5e17_662x196.jpeg


(source: The Reagan Presidential Library, by way of https://www.thebignewsletter.com/p/the-secret-plot-to-unleash-corporate)

Even Judge Mehta, who found Google is a monopolist, decided Google was too important to actually force change upon. Judges just don't care to enforce anti-trust law anymore. I'm not sure how one fixes a system where the arbiters of law do not actually comply with the law.
 
Upvote
26 (26 / 0)

nimble

Ars Scholae Palatinae
856
Subscriptor
This is similar to how Pepsi makes sure that anyone selling their product below Walmart prices suddenly stops receiving discounts or has to pay a higher wholesale price. All to make sure that Walmart has the lowest prices. Pepsi actively price checked other grocery stores prices to see who needed to have their discounts taken away or their wholesale prices raised.

It is so infuriating that even when you chose to shop local or shop at regional chains is that the biggest retailers are working with manufactures/vendors to ensure that those smaller shops or regional chains cannot offer lower prices.
It's Walmart calling the shots on that arrangement though, right? I can't see how it benefits Pepsi other than avoiding being punished by Walmart.
 
Upvote
11 (11 / 0)

HankLeStank

Smack-Fu Master, in training
53
“Hey! You seem to be illegally colluding to force Amazon to always have a lower price than competitors, while also illegally colluding to keep that “low” price artificially high”

“Nuh-uh! We might be illegally colluding, but we’re proud of it so take that!”
Amazon is consistently identified as America’s lowest-priced online retailer, and we’re proud of the low prices customers find when shopping in our store,” Blafkin said.

I uh, I don’t think that’s the winning argument you think it is my guy, you’re kind of proving their point.
 
Upvote
3 (4 / -1)
This is similar to how Pepsi makes sure that anyone selling their product below Walmart prices suddenly stops receiving discounts or has to pay a higher wholesale price. All to make sure that Walmart has the lowest prices. Pepsi actively price checked other grocery stores prices to see who needed to have their discounts taken away or their wholesale prices raised.

It is so infuriating that even when you chose to shop local or shop at regional chains is that the biggest retailers are working with manufactures/vendors to ensure that those smaller shops or regional chains cannot offer lower prices.
I can't speak to vendors for products Walmart resells, but I know from people who were involved in the sales that selling a product to Walmart corporate, they require that you can't offer another company a better deal than what they get, but it sounds very similar.
 
Upvote
15 (15 / 0)

Erbium168

Ars Centurion
2,720
Subscriptor
A few years ago, I wanted to order something from Office Depot. The price the company’s website seemed a bit high, so I checked the price on Amazon. It was much lower even though the Amazon listing showed that the item was sold by and fulfilled by Office Depot. I went ahead and ordered it through Amazon, and sure enough, it arrived in an Office Depot box with an Office Depot packing slip inside. I’ve found the same price difference at times since then. This sounds like the same sort of nonsense described in the article.

Anecdotally, as a reverse example, I bought a cheap Android tablet on Amazon a couple of weeks ago*. Doing a search turned up two versions of the same thing, priced at around £240.
But digging deeper, the vendor had an Amazon shop. And on that Amazon shop the identical product, despatched from the vendor's own UK warehouse, was £180 sent by DPD rather than fulfilled by Amazon.

All I can say is that Amazon's own delivery service seems to be rather expensive compared to DPD, because it couldn't possibly be that Amazon would deliberately bury a direct sale that was so much cheaper than the Amazon fulfilled version, would they?

*It's an extremely convenient way of comparing two papers on the same subject when the main computer is just a 13 inch Thinkpad.
 
Upvote
10 (10 / 0)

MilanKraft

Ars Tribunus Angusticlavius
6,824
Guys - this happens more often than you think. Amazon is just the biggest target for scrutiny.

Collusion is incredibly widespread. Especially in the 'move fast and break things' tech industry.

But good luck stopping it. The feds dont care.
Cellular phone providers have been colluding for decades, and at almost every price point. There is zero real competition among T-mobile, AT&T, and Verizon; they just play promotional games (temporarily give someone a good rate to switch to their service,) and every 2 or 3 years shift around a few minor aspects of their plans ("bundled benefits"), give them new names, and call it "innovative."

And all the smaller, piggyback carriers end up at the same price points too ,generally. I think Mint is the only one that doesn't, but not sure if their $15 / line offering is truly equivalent to the common $25 / line offered by many of the budget carriers like Consumer Celluar.

Broadband providers have colluded for decades as well, except less in terms of price points and more in terms of "you stay out of this big market over here, and we'll stay out of that big market over there," effectively giving each of them (Verizon, Comcast, Spectrum) a series of regional monopolies.

The whole thing is FUBAR and for sure no one in this clown administration will lift a finger... except maybe to dismiss any active lawsuits that might be out there.
 
Last edited:
Upvote
6 (6 / 0)

macderff

Smack-Fu Master, in training
13
Subscriptor
I have not bought anything on Amazon since around 2006. I also stopped shopping at Whole Foods and no longer use Grubhub. I don't subscribe to their tv service. It is actually pretty easy since so far everything that is sold on or by Amazon is available somewhere else.

Even if this is a meaningless gesture and doesn't change anything, I don't care. It makes me feel better to have nothing to do with them.

That they are causing prices to go up across the internet is unsurprising. There are already many reasons to find them despicable.
 
Upvote
20 (21 / -1)

Chuckstar

Ars Legatus Legionis
37,296
Subscriptor
Cellular phone providers have been colluding for decades, and at almost every price point. There is zero real competition among T-mobile, AT&T, and Verizon; they just play promotional games (temporarily give someone a good rate to switch to their service,) and every 2 or 3 years shift around a few minor aspects of their plans ("bundled benefits"), give them new names, and call it "innovative."

And all the smaller, piggyback carriers end up at the same price points too ,generally. I think Mint is the only one that doesn't, but not sure if their $15 / line offering is truly equivalent to the common $25 / line offered by many of the budget carriers like Consumer Celluar.

Broadband providers have colluded for decades as well, except less in terms of price points and more in terms of "you stay out of this big market over here, and we'll stay out of that big market over there," effectively giving each of them (Verizon, Comcast, Spectrum) a series of regional monopolies.

The whole thing is FUBAR and for sure no one in this clown administration will lift a finger... except maybe to dismiss any active lawsuits that might be out there.
Collusion requires explicit agreement, not just a tacit avoidance of price competition.
 
Upvote
0 (1 / -1)
I cant see this going anywhere, limiting Monopolies is very damaging to shareholder value.

When was the last time Antitrust was actually pursued and had meaningful reform? Hopefully this will be the start. Walmart, Google, Microsoft, Apple App Store etc etc etc are all based on gaining monopoly power.
Cellular phone providers have been colluding for decades, and at almost every price point. There is zero real competition among T-mobile, AT&T, and Verizon; they just play promotional games (temporarily give someone a good rate to switch to their service,) and every 2 or 3 years shift around a few minor aspects of their plans ("bundled benefits"), give them new names, and call it "innovative."

And all the smaller, piggyback carriers end up at the same price points too ,generally. I think Mint is the only one that doesn't, but not sure if their $15 / line offering is truly equivalent to the common $25 / line offered by many of the budget carriers like Consumer Celluar.

Broadband providers have colluded for decades as well, except less in terms of price points and more in terms of "you stay out of this big market over here, and we'll stay out of that big market over there," effectively giving each of them (Verizon, Comcast, Spectrum) a series of regional monopolies.

The whole thing is FUBAR and for sure no one in this clown administration will lift a finger... except maybe to dismiss any active lawsuits that might be out there.
i buy mint by the year and its great. i pay around $200 and get all the service i need (im not a heavy user) for the next year. so far tho hasn't ruined it.
 
Upvote
4 (4 / 0)
Guys - this happens more often than you think. Amazon is just the biggest target for scrutiny.

Collusion is incredibly widespread. Especially in the 'move fast and break things' tech industry.

But good luck stopping it. The feds dont care.
Yeah, look at mattress stores, eyewear, diamond jewelry, shoe stores, just for starters. Ever notice that on a search for an item, it cattlechutes you, based on location and IP, to amazon, walmart, home depot as top choices? Where are all the mom and pop merchants? their SEO suck? Or even how Walmart vendors are crazy high for prices unless you know what you are looking for.
 
Upvote
1 (1 / 0)

jdale

Ars Legatus Legionis
18,340
Subscriptor
Cellular phone providers have been colluding for decades, and at almost every price point. There is zero real competition among T-mobile, AT&T, and Verizon; they just play promotional games (temporarily give someone a good rate to switch to their service,) and every 2 or 3 years shift around a few minor aspects of their plans ("bundled benefits"), give them new names, and call it "innovative."

And all the smaller, piggyback carriers end up at the same price points too ,generally. I think Mint is the only one that doesn't, but not sure if their $15 / line offering is truly equivalent to the common $25 / line offered by many of the budget carriers like Consumer Celluar.

Broadband providers have colluded for decades as well, except less in terms of price points and more in terms of "you stay out of this big market over here, and we'll stay out of that big market over there," effectively giving each of them (Verizon, Comcast, Spectrum) a series of regional monopolies.

The whole thing is FUBAR and for sure no one in this clown administration will lift a finger... except maybe to dismiss any active lawsuits that might be out there.
If the phone maker sets a retail price and requires the sellers to stick to it, that's not the same kind of collusion as T-Mobile, AT&T, and Verizon agreeing to sell the phone for the same price. The former is pretty much standard operating procedure. The latter is price-fixing. I suspect they are smart enough not to do the latter (although, these are terrible companies, you never know).

In this case, Amazon is accused of using their leverage over the vendor in order to set up price-fixing, without having to communicate with their competitors directly. Basically creating a pretense that no collusion occurred. That's what makes it different.
 
Upvote
2 (2 / 0)
i buy mint by the year and its great. i pay around $200 and get all the service i need (im not a heavy user) for the next year. so far tho hasn't ruined it.
Mint is one of my best tech investments. Been paying $15 for years, no inflation, and I've gotten more data for the same price. I'm sure it won't last forever sadly.
 
Upvote
1 (1 / 0)