Quick Facts
- Amazon allegedly pressured vendors including Hanes and Levi’s to raise prices at Target and Walmart to protect its margins
- California’s antitrust lawsuit heads to trial in January 2027 after court denied Amazon’s motion to dismiss
- Amazon commands up to 50% of US e-commerce market and routes 80% of sales through its Buy Box feature
Amazon allegedly pressured major vendors to increase prices at Target and Walmart to protect its own profit margins, according to newly unsealed court documents in California’s antitrust lawsuit against the e-commerce giant.
The documents, released April 20 by California Attorney General Rob Bonta, reveal specific instances where Amazon flagged lower prices at competitors and vendors responded by raising those prices.
In one case, Amazon sent undergarments maker Hanes links to Target and Walmart listings showing lower prices than Amazon’s platform. Hanes confirmed it “reached out to Target and Walmart to have the prices increased,” according to the documents.
Levi Strauss faced similar pressure over khaki pants priced around $25 at Walmart versus nearly $30 on Amazon. After Amazon flagged the discrepancy, Levi’s reported that “Walmart partnered with [us] to update this as a test for the best interest of the marketplace.”
Amazon also temporarily suppressed listings for Allergan eye drops when it found them selling for less elsewhere. The medical products company responded that “Walmart got their price back up” to $16.99 and asked Amazon to restore the listings.
“Amazon’s scheme is neither subtle nor complex. It is price fixing, plain and simple,” said Attorney General Bonta. “Amazon has strong-armed vendors into raising prices elsewhere or pulling products from competing retailers altogether.”
The lawsuit describes a three-pronged strategy: requiring cross-platform price alignment, encouraging competitors to raise prices first so Amazon could follow, and pressuring vendors to remove products from cheaper rival platforms.
Amazon controls up to 50% of the US e-commerce market and routes approximately 80% of its sales through its Buy Box feature. Third-party sellers, who account for more than 60% of Amazon’s goods, argue the company uses pricing algorithms to prevent lower prices elsewhere.
Recent pricing data shows Amazon prices rose 12.8% this year through September, while Target prices increased 5.5% and Walmart prices climbed 5.3%, according to DataWeave analysis.
Amazon disputes the allegations, stating the FTC’s complaint “grossly mischaracterizes the retail industry” and that it will contest the lawsuit. The company argues its practices benefit consumers through competition.
The San Francisco Superior Court denied Amazon’s motion for summary judgment in April 2026. A preliminary injunction hearing is scheduled for July 23, 2026, with the full trial set for January 19, 2027.
Read more: Amazon allegedly pushed vendors to set higher prices at Target, Walmart
