California authorities reveal Amazon pressured sellers to raise competitor prices

Hundreds of previously redacted records reveal how Amazon has pressured independent sellers to raise prices on competitors like Walmart and Target to appear as having lower prices, California authorities allege.

The global conglomerate monitored competitors selling items for even one penny less, according to unredacted evidence.

The documents, including internal emails, deposition testimony and corporate presentations, were obtained by California Attorney General Rob Bonta in a 2022 civil lawsuit accusing Amazon of large-scale price-fixing.

The Guardian reviewed the cache filed in San Francisco Superior Court, where lawyers unmasked previously blacked-out details. A judge allowed some redactions at Amazon's request.

Bonta stated the evidence reinforces claims that Amazon "unlawfully punishes sellers whose products are sold at lower prices by other online retailers." "Especially while consumers face an affordability crisis, there is no room for illegal practices that impede competition and raise prices," he said. "California looks forward to our trial in January 2027."

Amazon called the claims "entirely false and misguided." "Amazon is consistently identified as America's lowest-priced online retailer, and it is ironic that the attorney general seeks to have us feature higher prices in ways that would harm consumers and competition,"

the company stated.

For years, the state alleges, Amazon used automated tools to track independent vendors' prices on competitor sites, then leveraged its e-commerce dominance to prevent prices below Amazon's, despite higher fees charged to vendors.

The lawsuit claims Amazon punishes vendors offering discounts on their sites or competitors by suppressing sales through removal from the "Buy Box" — the panel with "Add to cart" and "Buy Now" buttons.

In a "highly confidential" deposition, Mayer Handler of Leveret testified he received an October 2022 Amazon email stating a tiger-themed toddler pajama set was no longer eligible for Buy Box. Amazon suppressed it because his company sold it for $19.99 on Amazon but $19.98 on Walmart.

"That Amazon -- the price on Amazon was higher than the price was on Walmart." "And how much higher?" "One penny."

Handler testified his company then "changed pricing on Walmart to match or exceed Amazon's price" or altered product codes to evade tracking.

Responding to the Guardian, Handler criticized Amazon's internet-wide price tracking and "shadow" blocking, depriving consumers of lower prices. "Maybe that's capitalism," he wrote. "Or that's a monopoly causing price hikes on the consumer."

In another deposition, Pennsylvania supplier Terry Esbenshade testified in October 2024 that losing Buy Box due to lower internet prices caused 80% sales drops on Amazon, forcing price raises elsewhere.

Esbenshade found a patio table suppressed until he raised its minimum price on Wayfair above Amazon's. "So that raised the price up, and, voila, my product came back."

Amazon argues its practices promote competition by ensuring customers see low, competitive prices. "Just like any store owner who wouldn't want to promote a bad deal to their customers, we don't highlight or promote offers that are not competitively priced,"

the company stated.

Amazon denies agreements insulate it from competition or entrench dominance.

Bonta's office says unredacted exhibits show Amazon employees proactively undermined competition. One engineer described using Buy Box suppression and SC-FOD program against Temu vendors: "map them, FOD them, and they move out of Temu. But ye hua hai toh its a huge success for us 😄"

A senior employee emailed in August 2023 that Buy Box suppressions caused an Indiana seller to raise other sites' prices.

Amazon overtook Walmart as world's largest by revenue and holds nearly half of US e-commerce spending (56% in Q3 2025 per PYMTS.com).

The trial is scheduled for 19 January 2027.