Washington State Shuts Down 'Sold By Amazon' Program Nationwide

An anonymous reader quotes a report from The Seattle Times: Amazon is shutting down its "Sold by Amazon" program after an investigation from Washington Attorney General Bob Ferguson found it was anticompetitive and violated antitrust laws. The company engaged in unlawful price fixing and unreasonably restrained competition in order to maximize its own profits, according to the lawsuit and consent decree filed Wednesday in King County Superior Court. 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. The funds will go toward antitrust enforcement. The program ran from 2018 to 2020, when Amazon suspended it for reasons unrelated to the investigation, according to a spokesperson for the company. It was a small program offering another tool to businesses, the spokesperson said, and did not include all of the third-party sellers on the e-commerce platform. 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. A spokesperson for Amazon said the company believes the program was legal and good for consumers. Amazon acted as the retailer and purchased products from suppliers to fill a customer order, ensuring low prices for consumers. But, Ferguson's investigation concluded, the program boosted Amazon's sales and ensured it didn't have to compete with third-party sellers. "Consumers lose when corporate giants like Amazon fix prices to increase their profits," Ferguson said Wednesday. "Today's action promotes product innovation and consumer choice, and makes the market more competitive for sellers in Washington state and across the country."

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