Internal emails revealed in court and interviews with former employees describe how Amazon's practices allegedly drove up prices at competitors such as Walmart and Target, according to the Guardian. Amazon denies price-fixing claims and says it works to lower costs for consumers.
Key facts
- Internal emails and ex-employee interviews describe Amazon tactics that allegedly hiked prices across the internet, according to the Guardian.
- A 'modern leather' table lamp listed at Walmart rose from $24.99 to $39.
- An air fryer on Newegg went from $84.99 to $149.99.
- An electric ice-cream maker priced at $17.99 became unavailable at Best Buy and more than tripled to $59.99 at Amazon.
- Amazon denies price-fixing claims and says it works to lower costs for consumers.
Internal emails revealed in court and interviews with former employees describe how Amazon’s practices allegedly drove up prices for competitors like Walmart and Target, according to a report by the Guardian. The company denies price-fixing claims and says it works to lower costs for consumers.
The report points to specific examples of products whose prices climbed. A ‘modern leather’ table lamp listed online at Walmart rose from $24.99 to $39, according to the Guardian.
The price of an air fryer on a retail site called Newegg went from $84.99 to $149.99, the report said, illustrating the kind of increases described in the documents and interviews.
In another example cited by the Guardian, an electric ice-cream maker was listed at just $17.99 at both Amazon and Best Buy. It then became unavailable at Best Buy and more than tripled in price to $59.99 at Amazon.
The account draws on internal Amazon emails that surfaced in court, along with interviews with ex-employees, according to the Guardian. One characterization from the reporting captured the sense of dependence rivals felt, summed up in the phrase: ‘We were at their mercy.’
Amazon, for its part, rejects the allegations. The company denies price-fixing claims and says its focus is on lowering costs for consumers, according to the Guardian.
Why it matters
How one of the world's largest retailers sets and influences prices can affect what shoppers pay far beyond its own website. The examples cited suggest ordinary purchases like lamps, air fryers and ice-cream makers may cost more as a result, making the outcome of the underlying legal claims relevant to everyday consumers.
Frequently asked questions
What is Amazon accused of doing?
According to the Guardian, internal emails revealed in court and interviews with ex-employees describe practices that allegedly drove up prices for competitors like Walmart and Target. Amazon denies price-fixing claims.
What examples of price increases were reported?
The Guardian cited a Walmart table lamp rising from $24.99 to $39, a Newegg air fryer going from $84.99 to $149.99, and an ice-cream maker that was $17.99 at Amazon and Best Buy before becoming unavailable at Best Buy and more than tripling to $59.99 at Amazon.
How has Amazon responded?
Amazon denies the price-fixing claims and says it works to lower costs for consumers, according to the Guardian.