'Sold by Amazon' program ends following state investigation
Source: Associated Press
‘Sold by Amazon’ program ends following state investigation
January 26, 2022
SEATTLE (AP) — Amazon will end its “Sold by Amazon” program after an investigation by Washington state’s attorney general found it was anticompetitive and violated antitrust laws, according to court documents filed Wednesday.
The company engaged in unlawful price fixing and unreasonably restrained competition to maximize its own profits via the program that set a minimum price for certain third-party products sold on the platform, according to the lawsuit and consent decree filed in King County Superior Court in Seattle.
The Seattle Times reported that as a result of the investigation, Amazon will shut down the program nationwide and pay $2.25 million to the attorney general’s office, as well as provide annual updates on its compliance with antitrust laws.
-snip-
Through the program, third-party sellers entered into an agreement with Amazon that set a minimum payment rate for products sold on the platform, according to the lawsuit. If the sales exceeded the agreed upon minimum, Amazon would take a cut of the additional revenue.
-snip-
Read more: https://apnews.com/article/technology-business-seattle-washington-prices-5a31ad6faa6a08036280cf25fbd96ad2