California accuses Amazon of pressuring retailers to raise prices, court filings show
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California officials say Amazon may have quietly raised prices online by pressuring sellers and brands not to reduce their inventory, according to unsealed court testimony.
The allegations, revealed Monday as part of a federal antitrust lawsuit, say Amazon worked behind the scenes with companies like Levi Strauss and others to influence prices at competitors, including Walmart, Home Depot and Chewy.
In another example cited by the government, Levi's is accused of pressuring Walmart to raise the price of khaki pants after Amazon raised concerns about low inventory. For one, Amazon encouraged suppliers to coordinate price increases on products like pet treats — California says it helped Amazon avoid matching lower prices.
“Since we are not part of this case, we have no comment on the allegations,” said a spokesperson for Levi Strauss.
FOX Business reached out to Walmart, Home Depot and Chewy.
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An employee near packages in an Amazon delivery vehicle in San Francisco, California, US, Monday, Feb. 2, 2026. (David Paul Morris/Bloomberg via Getty Images)
State officials say the behavior was not isolated, but part of a broader strategy implemented across product lines over several years. The filing reveals three alleged tactics: encouraging competitors to raise prices, temporarily undercutting prices, stiffening high prices, and in some cases removing low-priced products from competing sites entirely.
In some cases, sellers are said to have outsourced products to competing sellers entirely – removing cheaper options before prices rise on Amazon and elsewhere.
The filing also says Amazon enforces compliance by using its market power, including threatening to suppress product listings, limit promotions or impose financial penalties on sellers who allow lower prices on other platforms.
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Authorities say sellers often have no choice but to comply, given Amazon's scale and importance to their business.
“Amazon is operating illegally for profit by making sure consumers have no other place to turn for lower prices,” Attorney General Rob Bonta said in a statement.
Attorney General Rob Bonta speaks to the media at UC Irvine in Irvine, California, on June 16, 2025. (Paul Bersebach/MediaNews Group/Orange County Register via Getty Images)
Amazon has denied the claims, saying its agreements with sellers are legal and help ensure competitive pricing and product availability. The company said it “is consistently identified as America's lowest-priced online retailer” and called the lawsuit an attempt to distract from a weak case.
The filing also reveals that Amazon does not encourage employees to write down price negotiations, instead encouraging the use of telephone calls.
The Amazon logo is displayed on the facade of the Amazon Germany headquarters in Parkstadt Schwabing, Munich, Bavaria, on Jan. 27, 2026. (Matthias Balk/photo alliance via Getty Images)
The case comes as Amazon's ranking continues to grow — the company recently surpassed Walmart in annual revenue — intensifying scrutiny of its impact on online prices.
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California is seeking to block the alleged practices and recover profits, with a hearing scheduled for July and a trial set for January 2027.
Reuters contributed to this report.
