CBS News: After Washington, D.C., sues Amazon, other states reportedly consider antitrust actions

May 28, 2021 Media

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

Washington, D.C., filed a suit  against the U.S.’ largest online seller Tuesday, 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.

For now, Amazon appears undeterred. A day after Racine’s lawsuit, the company announced its second-largest acquisition, buying entertainment powerhouse MGM for $8.45 billion. The deal, second only to Amazon’s 2017 purchase of Whole Foods, immediately raised the eyebrows of lawmakers and activists. The American Economic Liberties Project called for Congress to stop the deal, while tech industry critic and GOP Senator Josh Hawley tweeted that Amazon “shouldn’t be permitted to buy anything else.”