Amazon will soon be shutting down its Sold by Amazon program, which ensures buyers have access to low-priced products. The online retail giant has decided to halt the program after an investigation by the Washington state attorney general found the program was anticompetitive and violated antitrust laws.
Sold by Amazon was active between 2018 and 2020. Amazon said the company simply acts as a retailer to buy products from suppliers to fulfill customer orders. This ensures that consumers have access to aggressively priced products. Amazon still says it’s running a small project and giving businesses another tool.
However, the lawsuit argues that the program does not include all third-party sellers on the e-commerce platform. Through this program, third-party sellers enter into agreements with Amazon that set a minimum payout rate for products sold on the platform. If sales exceed the agreed-upon minimum level, then Amazon takes a cut of the additional revenue, the lawsuit said. mentioned in.
Washington State Attorney General Bob Ferguson noted that the program apparently boosted Amazon sales. However, it also ensures that Amazon doesn’t have to compete with third-party sellers. When corporate giants like Amazon fix prices to increase profits, consumers lose out.
The Washington state attorney general’s investigation reportedly found that Sold by Amazon was anticompetitive and violated antitrust laws. As a result of the investigation, Amazon will shut down the program nationwide and pay the attorney general’s office $2.25 million. Additionally, Amazon will have to provide annual updates on its compliance with antitrust laws. The fines collected will be used to enforce antitrust laws.