Amazon Allegedly Coerced Suppliers to Raise Rival Prices by $100,000, Internal Emails Show
Updated
Updated · The Guardian · Jul 22
Amazon Allegedly Coerced Suppliers to Raise Rival Prices by $100,000, Internal Emails Show
1 articles · Updated · The Guardian · Jul 22
Summary
Internal emails and court records detail Amazon cutting or threatening suppliers’ sales on its platform unless they reimbursed margin losses or got rival retailers to raise prices.
Chefman’s air fryer jumped to $149.99 on Newegg from $84.99 as the supplier discussed reimbursing Amazon another $100,000 after already paying back $400,000, according to the California case.
Other records show suppliers pulling products from rivals to relieve Amazon pressure, including an ice-cream maker removed from Best Buy before its Amazon price rose to $59.99 from $17.99.
Former Amazon employees and suppliers said staff were steered to use phone calls and coded language—such as avoiding retailer names in emails—while Amazon says the state is distorting routine vendor negotiations.
The disclosures add detail to price-fixing suits by California and the FTC, both set for trial in early 2027, as Amazon argues its practices lower prices for its own customers.
What evidence will prove Amazon's secret algorithm inflated prices across the internet?
Will this week's hearing force Amazon to halt its alleged price-fixing tactics before its trial?
Could this legal battle force Amazon to split its marketplace from its retail business?
California Sues Amazon for Price-Fixing as E-Commerce Giant Controls 56% of US Online Retail
Overview
California has filed an antitrust lawsuit against Amazon, alleging that the company engaged in a widespread price-fixing scheme to maintain its dominant position in the online retail market. According to the report, Amazon allegedly pressured suppliers and rival retailers by flagging lower prices on other platforms and directing vendors to either raise their prices elsewhere or remove their products. These practices, brought to light by newly unsealed court filings in April 2026, have gained significant public attention. The lawsuit claims that Amazon’s actions ensured it was not undercut on pricing, reinforcing its market dominance and impacting competition.