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Judge likely to deny California's bid to stop Amazon's alleged price fixing

A California state judge indicated on Thursday that he is likely to deny a bid by California Attorney General Rob Bonta to block Amazon.com Inc. from alleged price-fixing practices. The state had requested an order to halt Amazon from allegedly coercing third-party brands into pushing rival retailers—such as Walmart and Target—to raise consumer prices, preventing Amazon from being undercut in the online retail marketplace. San Francisco Superior Court Judge Ethan Schulman issued a tentative ruling denying the state's preliminary injunction request, expressing skepticism over the state's reliance on evidence dating back to 2023. While the tentative ruling marks a significant near-term legal victory for Amazon ahead of the full trial scheduled for January, California's attorney general expressed disappointment and reiterated plans to pursue the antitrust claims in court. The development eases immediate regulatory and operational disruption risks for Amazon's third-party merchant marketplace model. Had an injunction been granted, Amazon may have faced forced alterations to its algorithmic pricing parity and competitive merchant monitoring systems, which could have impacted retail margin dynamics.

Category

Amazon

Sentiment

Bullish

Event

Legal action

Reading time

1 min