Other States May Follow DC’s Actions Against Amazon

Antitrust clouds are gathering over Amazon in a week that saw the retail giant face its first US lawsuit alleging competition-squelching practices just before the company announced its second-biggest acquisition ever.

Washington, DC, filed a suit  against the US’ largest online seller Tuesday, May 25, accusing Amazon of monopolistic behavior. The suit claims the e-commerce giant’s dominance allows it to impose onerous terms on third-party sellers on its platform that drive up prices for online shoppers everywhere.

Now, other state enforcers are examining Amazon for potential violations, according to Bloomberg. Attorneys general in Connecticut, Massachusetts, and Pennsylvania are looking at Amazon’s practices, the outlet reported, citing anonymous people familiar with the matter.

Karl Racine, the DC attorney general, told reporters on Tuesday he had not coordinated with federal regulators on the suit. He said at the time he didn’t know if other states would join or support the district’s suit, while noting it was “not unusual” for that to happen.

Amazon is already facing antitrust scrutiny from the Federal Trade Commission as well as the attorneys general of New York and California, after a House subcommittee issued a scathing report on the retailer’s practices late last year.

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