A U.S. federal judge has ruled that Amazon must face a nationwide class action lawsuit over allegations that the company violated antitrust laws by restricting third-party sellers from competing on rival platforms and inflating fees, which allegedly led to higher prices for consumers. The class includes 288 million U.S. customers who purchased five or more new goods from third-party sellers on Amazon since May 2017. The lawsuit, filed in 2021, claims Amazon’s policies allowed the company to impose inflated fees on sellers, resulting in consumers paying higher prices. Amazon has denied any wrongdoing and has already appealed the class certification order, arguing the class was too large and that the plaintiffs failed to show a widespread effect. The judge ruled there was no evidence that the class size was overbroad, noting that other federal courts have certified large classes in the past.
The lawsuit alleges that Amazon’s policies restricted third-party sellers from offering their products at lower prices on rival platforms while they were still for sale on Amazon. This, according to the plaintiffs, created an uneven playing field and allowed Amazon to inflate fees, ultimately leading to higher prices for consumers. The judge, John Chun, acknowledged that Amazon has already argued the class was too large to be manageable, but he found no evidence to support this claim. The case is now set to proceed to trial, with Amazon maintaining its position that it has not engaged in any wrongdoing and that the allegations are unfounded.
Amazon’s denial of wrongdoing has not deterred the legal action, as the company’s market dominance has long been a point of contention. The class action could have significant financial implications for the e-commerce giant, potentially leading to substantial damages for the affected consumers. While Amazon has not commented on the details of the case, the legal battle underscores the growing scrutiny of big tech companies and their practices. The outcome of this case may set a precedent for future antitrust litigation against major corporations in the United States.