California Attorney General Rob Bonta last night filed a request for a preliminary injunction in California’s existing case against Amazon for price fixing. Attorney General Bonta’s 2022 lawsuit alleged that the company stifled competition and caused increased prices across California through its anticompetitive policies in order to avoid competing on price with other retailers. New evidence paints a clearer and more shocking picture. The motion for a preliminary injunction comes after a robust discovery process where California uncovered evidence of countless interactions in which Amazon, vendors, and Amazon’s competitors agree to increase and fix the prices of products on other retail websites to bolster Amazon’s profits. Time and again, across years and product categories, Amazon has reached out to its vendors and instructed them to increase retail prices on competitors’ websites, threatening dire consequences if vendors do not comply. Vendors, bullied by Amazon’s overwhelming bargaining leverage and fearing punishment, comply — agreeing to raise prices on competitors’ websites (often with the awareness and cooperation of the competing retailer), or to remove products from competing websites altogether. Amazon’s goal is to insulate itself from price competition by preventing lower retail prices in the market at the expense of American consumers who are already struggling with a crisis of affordability.

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[–] 300 points 8 months ago (27 children)

There was a time when Amazon was not full of scummy rip-off products, when it was not playing games with prices, when it was not a cloud-computing powerhouse, and you know what happened?

That's right, they crushed their adversaries (retail shopping) and earned billions in profits. They won.

But somehow that's not enough winning, there isn't enough winning until all the value has been vacuumed up from the world.

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  • [–] 196 points 8 months ago (22 children)

    Bezos explicitly undercut the competition for years to drive all of the competition out of business. Amazon took as much time from 1997-2016 to make as much profit as they did in 2017, which is also (not) coincidentally when they hit peak market saturation and were able to start raising their prices.

    So what you're talking about was real, but it wasn't like, "back when Amazon was good", they were just preparing for what they are now. Having a huge monopoly on just about everything has always been their win condition, and they're no where near done winning.

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  • [–] 85 points 8 months ago (1 child)

    Yeah. It's the same thing Uber did with pushing cab services out of business.

    Not only that, but AWS is the real money maker for them. Not that retail and gaming and prime and whatever don't also make boat loads of cash, but it doesn't even graze AWS. The scale of these data centers is unreal and most of the internet runs on AWS.

    I'm an industrial electrician with background on what they're ordering and installing in terms of control panels and if you saw the weekly shipments it'd make you sick. And we're only one supplier, they have others.

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  • [–] 28 points 8 months ago

    I think it’s worse because Bezos (ex-wallstreet) had his buddies at Bain Capital short-and-distort competing companies into bankruptcy, which has the added bonus of clearing the tax burden from the gains on those shorts.

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  • [–] 29 points 8 months ago (13 children)

    And that is why I no longer buy anything from them. I'm just embarrassed it took me as long as it did to realize what they were really doing.

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  • [–] 20 points 8 months ago (11 children)

    The frustrating thing is we can't boycott AWS since so many of the sites we use run on it. But yes, we absolutely shouldn't buy things through Amazon or any of the other web stores Amazon owns.

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  • [–] 13 points 8 months ago (3 children)

    we absolutely shouldn't buy things through Amazon or any of the other web stores Amazon owns.

    I try to use eBay as an alternative, though i find every 3-4 orders i place there, i get one in an Amazon box that by all rights appears to have been shipped by Amazon. I swear people are drop-shipping stuff from Amazon to their eBay buyers.

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  • [–] 2 points 8 months ago*

    They are doing exactly that for a sometimes hefty markup. I got something like that with a gift receipt, so ultra lazy, looked up the item and it was $11 cheaper. Like that totally defeats the purpose of going elsewhere.

    I reported the seller then returned it.

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  • [–] 5 points 8 months ago (5 children)

    I have often wondered whether targeted internet boycott days would shake up AWS, but I don't know enough about their billing structure to run the numbers to see how much that would dig into AWS profits + how much of their income is flat subscription fees vs. billing on number of calls and haven't had a chance to dig into it yet.

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  • [–] 1 point 8 months ago (2 children)

    The government, use the government. It’s our last chance to use the government to regulate corporations before they become the government

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  • [–] 2 points 8 months ago* (1 child)

    I am a big believer in regulation, and some governments right now are in a position where they can be pressured to take anti-monopoly action against Amazon, which I want very much to see. Being in the U.S. as I am right now, though... There are some state governments I would like to see act (and shout-out to California for doing so here), but I am also brainstorming other nonviolent disruptive action which could be taken, because the federal government right now is actual fascists and Amazon is in league with them.

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  • [–] 1 point 8 months ago

    I was hoping last years shenanigans would have pushed Europe away from our tech companies. I don’t see much hope unless we can elect a new Congress that is willing to do Monopoly busting across the board.

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  • [–] 12 points 8 months ago (1 child)
  • [–] 2 points 8 months ago

    Walmart didn't even touch amazon on this. There were articles for years about how mind boggling (and the articles were praising, not even critical of) it was that amazon's investors were content to let bezos run amazon on a net zero or even negative profit model. I don't think I've ever heard of walmart not pulling a profit.

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  • [–] 7 points 8 months ago* (last edited 8 months ago) (3 children)

    You can't really compare online book retailer Amazon to global online marketplace Amazon. Your underlying point is still mostly correct, but I would exclude the years that they were primarily focused on books. From my lived memory they didn't really become the online retail juggernaut until a few years after the launch of Prime. Free shipping turned them into what it is today. So maybe the best comparison would be from like 2006-2016? Or maybe I'm wrong and the distinction isn't necessary. Idk. I'm just trying to foster conversation

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  • [+] 8 points 8 months ago (2 children)
  • [–] 4 points 8 months ago (1 child)

    That's what's crazy to me, they survived the dot com crash and were so diversified that I have no idea how they stayed afloat. I would think that all of the combined expenses across all of their ventures without a true cash cow would sink them. Instead they survived and became the trash heap of consumer rights violations that they are.

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  • [–] 5 points 8 months ago*

    The reason Amazon survived is because they WEREN'T running a dozen different ventures. They were an online bookstore and people kept buying books. Amazon benefited from the crash because that was when they started buying up servers to build AWS. Prime was just free 2 day shipping on books when it launched.

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  • [–] 21 points 8 months ago

    The other commenters here are right about Amazon's initial methods, but I'm also going to highly recommend Cory Doctorow's Enshittification for a detailed explanation of how this happens (including a breakdown on Amazon specifically) and what to do about it.

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  • [–] 23 points 8 months ago

    Ehhh not really. They operated at massive losses for a decade or more to eliminate the competition while growing their customer base. This is simply stage 1 of enshittification. You can only do this if you're unbelievably filthy fucking rich. Then at some point they needed to cash out on all the good will and reputation they developed and that brings us to the shithole economy of today where people are simply too lazy to shop anywhere else.

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  • [–] 129 points 8 months ago (5 children)

    They're BUSTED when someone goes to prison.

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  • [–] 11 points 8 months ago (2 children)

    Well, it's California's attorney general, so better than even chance for actual punishment.

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  • [–] 108 points 8 months ago (3 children)

    oh I just cant wait for the highest profile minor slap on the wrist of the century!

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  • [–] 120 points 8 months ago (7 children)

    Bezos was a hedge fund manager. This should surprise nobody.

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  • [–] 30 points 8 months ago*

    Bezos was a Senior VP by the age of 30, working for D.E. Shaw, and was a rumored heir for taking over the business after he retires. Bezos would have made billions and managed a major hedge fund. Set for life.

    But that was not enough for him, he wanted to hoard hundreds of billions of wealth instead, so here we are. How perfectly healthy and in no way a mental illness.

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  • [+] -53 points 8 months ago (6 children)
  • [+] 36 points 8 months ago (6 children)
  • [–] 31 points 8 months ago (2 children)

    I think it was pretty obviously sarcasm

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    [–] 48 points 8 months ago (5 children)

    Can openers is what did it for me.

    In 2015 I needed a new manual can opener. The local big-box stores had two basic styles. A cheap, all metal one that was just stamped from a single sheet, and a more expensive one with better handles.
    The more expensive one had previously rusted and began to look nasty within a few years.
    Amazon had a bunch of different styles at less than the price point of the more expensive one.

    I bought one. It was fine. I didn’t love the operation. It cut the whole top off from the side, rather than from the top in a downwards cut. The sharp edges were on the can rather than on the lid. It would catch the paper labels and sometimes wad them up into the can while you cut. Cans with no air space would leak when opened.

    Anyway. Replaced it in 2019. Amazon still had a broad selection, but all except for obvious crap was as expensive as the local big box store’s expensive option. Wound up going to a smaller local(ish) bulk foods store and bought a cheapo restaurant one for less than Amazon’s/the big box store’s similar offerings. Minimal rusting to date.

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  • [–] 4 points 8 months ago

    I had a similar experience with a juicer. The hand ones kept breaking so I bought a rack and pinion beast from a restaurant supply company that will be inherited by my grand kids.

    It cost me less than half of what Amazon wanted, and it wasn't cheap

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  • [–] 2 points 8 months ago

    I had experiences like this one a lot. Most of the time what you get in Amazon cheap ist trash. All the good stuff isn't much cheaper most of the time, 35€ instead of 40€ sounds legit. For me at least (worker, 2 Kids, most def. not rich) this ist not enough to buy from the devil thats kills all thats is good

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  • [–] 2 points 8 months ago (1 child)

    I bought one. It was fine. I didn’t love the operation. It cut the whole top off from the side, rather than from the top in a downwards cut. The sharp edges were on the can rather than on the lid. It would catch the paper labels and sometimes wad them up into the can while you cut. Cans with no air space would leak when opened.

    That sounds like a really shitty one, actually. The can openers that operate on the side of the can should uncrimp the top, not actually cut into the can.

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    [–] 86 points 8 months ago* (last edited 8 months ago) (9 children)

    If America was a serious country they would break up Amazon for this AND arrest Bezos and send him to a random Supermax for corporate blackmail, mass fraud, and unfair competition. But I fear they never were.

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  • [–] 44 points 8 months ago (2 children)

    America was bought by the corpos a long time ago.

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  • [–] 15 points 8 months ago (1 child)

    The Guantanamo Bay detention camp is a stain on America and a threat to all of us now.

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  • [–] 8 points 8 months ago (3 children)

    A nitpick, but America won't have Gitmo in that scenario tho. Displacing american people to random countries now is deeply rooted in the premise it's okay to have a torture camp franchized over to places out of everyone's sight. It wasn't okay before and it's not now, and serious country with some sense and a accountability would not employ such tactic.

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  • [–] 1 point 8 months ago (2 children)

    If you did want to nitpick Bezos hasn't run Amazon since 2021, so we'd have to check when they were being accused of doing so.

    5 years on and most of us think Bezos everytime we hear Amazon still

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  • [–] 6 points 8 months ago* (1 child)

    I mean, how can we be so sure Bezos doesn't still have influence over Amazon? He sure owns a lot of stocks in it for obvious reasons. He's bought the Washington Post to spread propaganda. He's set up Blue Origin to get government contracts. I've no reason to believe that he's not apart of the Amazon problem and their influence over American Markets.

    Something about one big club.

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  • [–] 39 points 8 months ago (2 children)

    Market regulates itself or somthing.

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  • [–] 10 points 8 months ago

    Yeah, that's what the Health Care CEOs assassin was doing, just a minor self-correction in the Free Market. That CEO's policies pissed off a customer bad enough that the customer eliminated the problem, and that company, and every other health care company, loosened up their denials significantly as a result.

    That's the Free Market working the way it's supposed to. That assassin should be celebrated for working within the system to balance the market.

    It wasn't Luigi though.

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