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Amazon Faces New Allegations of Forcing Price Hikes Across Rival Retailers

By  |  April 21, 2026

Newly unsealed court documents have intensified scrutiny of Amazon, with California officials alleging the retail giant pushed major brands to raise prices on rival platforms as part of a broader effort to control online pricing.

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    The documents, released Monday, are tied to a 2022 antitrust lawsuit brought by California Attorney General Rob Bonta. The case claims Amazon used its influence over vendors to limit competition and drive up prices across the internet. According to CNBC, the complaint focuses on contractual agreements between Amazon and third-party sellers that allegedly discouraged lower pricing on competing marketplaces.

    Brands including Levi Strauss & Co. and Hanes are cited in the filings. Per CNBC, internal communications show Amazon flagged instances where products were listed more cheaply on rival sites such as Target and Walmart, prompting vendors to take action.

    In one example, Hanes acknowledged it “reached out to Target and Walmart to have the prices increased,” according to the filing. In another instance, Amazon reportedly suppressed listings for eye drops made by Allergan, a unit of AbbVie, after discovering lower prices elsewhere. The company later informed Amazon that “Walmart got their price back up” to $16.99 and requested reinstatement of the listing, which Amazon granted.

    The documents also describe a case involving Levi’s, where Amazon allegedly encouraged the brand to push Walmart to increase prices on certain clothing items. The retailer subsequently adjusted its pricing, the filing states.

    Related: Amazon Fails to Secure Early Victory in California Antitrust Case Over Pricing Practices

    Bonta argued that Amazon’s dominance in e-commerce leaves vendors little choice but to comply. “Amazon has strong-armed vendors into raising prices elsewhere or pulling products from competing retailers altogether so that Amazon can protect its profit margins,” he said during a call with reporters. “That’s not competition. It’s price fixing, and under California law, it’s illegal.”

    Amazon has denied the allegations. In a statement, a company spokesperson said it would respond in court “at the appropriate time.” The spokesperson added, “The Attorney General’s motion is a transparent attempt to distract from the weakness of its case, coming more than three years after filing its complaint and based on supposedly ‘new’ evidence it has had for years.”

    The lawsuit seeks to halt the alleged practices while proceedings continue and calls for the appointment of an independent monitor to oversee Amazon’s compliance. The case is currently scheduled for trial in 2027.

    According to CNBC, Amazon accounts for as much as half of the U.S. e-commerce market, a scale that regulators argue gives it outsized influence over pricing. The company maintains that its policies are designed to keep prices low for consumers.

    The case is part of a broader wave of regulatory challenges. Federal regulators and multiple states filed a separate lawsuit in 2023 accusing Amazon of abusing its market power, while earlier actions from Washington, D.C., and European authorities have also targeted its pricing strategies.

    Third-party sellers, who make up more than 60% of Amazon’s marketplace, have also raised concerns. Many claim that pricing algorithms discourage them from offering lower prices elsewhere, as doing so could jeopardize their access to the platform’s “Buy Box,” a key feature that drives sales.

    Source: CNBC