In a legal battle unfolding in a Seattle federal court, online retailer Zulily has filed a lawsuit against Amazon.com, accusing the e-commerce giant of orchestrating a price-fixing scheme aimed at undermining Zulily’s discount sales strategy.
The lawsuit, initiated by Seattle-based Zulily, alleges that Amazon engaged in practices that restrained retail price competition, contravening US and state antitrust laws.
According to Zulily’s complaint, suppliers were coerced by Amazon into maintaining prices at par with those on Amazon’s platform, impelling Zulily to deviate from its commitment to offering consumers competitive prices.
“Zulily, an advocate for consumer affordability, stands as one of Amazon’s impacted entities,” stated the complaint.
In response, an Amazon spokesperson refuted the allegations, stating that “the allegations made in this lawsuit are false” and that “the retail industry is dynamic and strong with many retailers succeeding.”
This legal skirmish adds to Amazon’s existing challenges, including antitrust lawsuits from various quarters, such as consumers, states like California and the District of Columbia, and the US Federal Trade Commission (FTC).
The FTC’s lawsuit in September, alleging Amazon’s misuse of market dominance, referred to Zulily as supporting evidence. Zulily, acquired by private investment firm Regent in May, specialises in the sale of toys, clothing, and homewares.
Recently, Amazon moved to dismiss the FTC’s case in Seattle, asserting that the agency failed to demonstrate any harm to consumers resulting from “common retail practices.”
Amazon’s legal representatives emphasised the company’s swift matching of competitors’ discounts, promotion of competitively priced deals, and commitment to ensuring exemplary delivery for its Prime subscribers.
