California Case Against Amazon Highlights Alleged Price Pressure on Sellers
Newly Unsealed Records Detail Claims of Market Influence
Documents Reveal Alleged Pricing Practices
SAN FRANCISCO — Newly unsealed court records in California’s antitrust case against Amazon provide detailed claims that the company pressured independent sellers to raise prices on competing websites.
The documents, filed in San Francisco County Superior Court, include internal emails, depositions and corporate presentations obtained by California Attorney General Rob Bonta as part of a lawsuit first filed in 2022.
State officials allege Amazon used its position in online retail to ensure products were not sold for less on rival platforms such as Walmart, Target and Wayfair.
State Says Practices Limit Competition
Bonta said the newly revealed evidence supports the state’s claim that Amazon restricted competition and raised prices.
“Especially while consumers face an affordability crisis, there is no room for illegal practices that impede competition and raise prices,” Bonta said. “California looks forward to our trial in January 2027.”
The lawsuit claims Amazon tracked sellers’ prices across the internet using automated tools and penalized those who offered lower prices elsewhere. According to the state, sellers risked losing access to key features on Amazon’s platform if their prices were lower on competing sites.
Sellers Describe Impact on Business
Depositions included in the records describe how sellers adjusted pricing to maintain visibility on Amazon.
Mayer Handler, owner of the clothing company Leveret, testified that one of his products lost access to Amazon’s “Buy Box” after it was listed for one cent less on Walmart. The Buy Box is a key feature that allows customers to quickly purchase items.
Handler said his company responded by raising prices on Walmart or changing product codes. He criticized the practice, writing that it deprived consumers of “lower prices.”
Another seller, Terry Esbenshade, said losing the Buy Box caused a sharp drop in sales. He testified that his sales could fall by about 80% when products were suppressed on Amazon due to lower prices elsewhere.
In one example, Esbenshade said he raised the price of a patio table on another website after discovering it was being sold for less than on Amazon. Once the price increased, the product regained its Buy Box placement.
“So that raised the price up, and, voila, my product came back” on Amazon, he said.
Amazon Denies Allegations
Amazon has rejected the claims, calling them “entirely false and misguided.” The company said its practices are designed to ensure customers see competitive prices and maintain trust.
“Just like any store owner who wouldn’t want to promote a bad deal to their customers, we don’t highlight or promote offers that are not competitively priced,” the company said.
Amazon also denied that its agreements with sellers are intended to limit competition or reinforce its market position.
Broader Market Impact
The case highlights Amazon’s dominant role in online retail. By the end of 2022, the company accounted for nearly half of U.S. e-commerce spending, far ahead of competitors. In the third quarter of 2025, Amazon’s share rose to 56%, compared with 9.6% for Walmart.
State attorneys argue that this dominance allows Amazon to influence pricing across multiple platforms, affecting both sellers and consumers.
The trial is scheduled to begin Jan. 19, 2027, and could shape how online marketplaces regulate pricing practices and competition.