The underlying dispute centers on a 2022 lawsuit filed by California Attorney General Rob Bonta alleging that Amazon employs anticompetitive pricing practices that stifle price competition among online retailers, causing higher prices for consumers on and off Amazon. The suit charges Amazon with violating California's Unfair Competition Law and the Cartwright Act.
The court denied Amazon's motion for summary judgment of its seventh crossclaim, which represented a significant aspect of Amazon's defense. According to the AG's office, the court found that Amazon cannot demonstrate how removing the "Add to Cart" and "Buy Now" buttons — for products that do not comply with Amazon's pricing practices — is legal or procompetitive. The ruling marks the second time Amazon has failed to convince the court that California's antitrust laws do not reach its conduct; the company had previously lost an earlier effort to dismiss the lawsuit on the basis that California's antitrust laws did not reach Amazon's anticompetitive conduct.
At the core of the case is Amazon's alleged practice of requiring merchants to agree not to offer lower prices elsewhere — including on competing sites such as Walmart, Target, and eBay, and in some cases on merchants' own websites. Merchants that do not comply face sanctions including less prominent listings, loss of the "Buy Box" on Amazon, or being required to "compensate" Amazon if other online stores lower their prices, and the possibility of termination or suspension of their ability to sell on Amazon. The AG's office contends that these arrangements artificially stabilize prices above competitive levels.
Attorney General Bonta said the ruling "sends a clear message to current and future behemoth corporations: The California Department of Justice will not allow consumers to be cheated," adding that "there is no room for anticompetitive pricing practices that impede free market competition and raise prices for consumers."
Separately, Bonta recently filed a request for a preliminary injunction after discovery uncovered what the office describes as substantial evidence that Amazon, through its vendors, agreed to increase and fix the prices of products on Amazon and other retail websites to protect and bolster Amazon's profits. That motion is set to be heard on July 23, 2026.
Trial is scheduled for January 19, 2027.
Note: The court's ruling is described as characterized by the California Attorney General's office. The full text of the court order was not included in the source packet.