DC Attorney General Loses Again in Antitrust Claims Against Amazon

August 3, 2022 by Tom Ramstack
DC Attorney General Loses Again in Antitrust Claims Against Amazon
District of Columbia Attorney General Karl A. Racine

WASHINGTON — Washington, D.C.’s attorney general lost again Monday in an attempt to hold Amazon.com liable for alleged antitrust violations.

Attorney General Karl A. Racine filed an anti-competition lawsuit last year that accused Amazon of unfair trade practices that included using overly restrictive contracts with businesses that sell products on the e-commerce giant’s website.

The result was higher prices for consumers and less competition, according to the lawsuit.

In March, a District of Columbia Superior Court judge dismissed the lawsuit, saying it lacked evidence Amazon’s business strategy led to higher prices for e-commerce customers.

The attorney general’s office responded by asking Judge Hiram E. Puig-Lugo to reconsider.

His second ruling issued Monday was essentially the same as the first, namely that Amazon used a smart business strategy that showed no evidence of violating any laws.

“The problem with the complaint was that the District recited conclusory statements while failing to identify information which supported the conclusions it reached,” Puig-Lugo wrote in his 18-page order. “The mere repetition of conclusions does not convert conclusions into facts.”

The judge said the attorney general failed to show Amazon forced competitors like Walmart, Costco or Target to raise their retail prices or prevented them from matching Amazon’s prices.

The lawsuit had argued that “there is a dangerous possibility” Amazon would gain an e-commerce monopoly because it controls half to 70% of online sales.

Puig-Lugo disagreed, writing that “merely controlling a dominant share of the market does not satisfy pleading requirements for antitrust actions, particularly in pandemic times when online delivery sales have increased. In any event, sellers are free to migrate to other online platforms as market dynamics continue to unfold.”

The attorney general’s office said it was considering the possibility of an appeal.

“We are disappointed in the court’s decision and we respectfully believe that the judge got this wrong,” a statement from the attorney general’s office said. “Indeed, a recent federal court decision analyzed a nearly identical issue and rejected Amazon’s request to dismiss that case.”

The case is District of Columbia v. Amazon.com Inc., case number 2021 CA 001775 B, in Washington, D.C. Superior Court.

Tom can be reached at [email protected] or on Twitter at @tramstack.

A+
a-
  • Amazon
  • District of Columbia
  • Karl Racine
  • In The News

    Health

    Voting

    Antitrust

    September 12, 2023
    by Tom Ramstack
    Google Accused of Unfair Search Engine Competition

    WASHINGTON — Search engine giant Google endured accusations Tuesday in federal court in Washington, D.C., that it unfairly squeezed out... Read More

    WASHINGTON — Search engine giant Google endured accusations Tuesday in federal court in Washington, D.C., that it unfairly squeezed out competition through contracts that were similar to ultimatums. The contracts with computer and smartphone makers sometimes required them to use Google as their default search engine... Read More

    Google's Search Dominance Challenged in Biggest Antitrust Trial in Decades

    WASHINGTON (AP) — Google has exploited its dominance of the internet search market to lock out competitors and smother innovation,... Read More

    WASHINGTON (AP) — Google has exploited its dominance of the internet search market to lock out competitors and smother innovation, the Department of Justice charged Tuesday at the opening of the biggest U.S. antitrust trial in a quarter century. “This case is about the future of... Read More

    February 24, 2023
    by Tom Ramstack
    Justice Dept. Wants Google Punished for Allegedly Hiding Antitrust Evidence

    WASHINGTON — The Justice Department is asking a federal court to punish Google for what it says is an effort... Read More

    WASHINGTON — The Justice Department is asking a federal court to punish Google for what it says is an effort to hide evidence of antitrust violations. A Justice Department motion revealed Thursday says Google automatically deleted employee chats after 24 hours. Government investigators have been searching... Read More

    US Case Against American Airlines and JetBlue Heads to Court

    DALLAS (AP) — The government's antitrust lawsuit against American Airlines and JetBlue begins Tuesday and the outcome could determine how... Read More

    DALLAS (AP) — The government's antitrust lawsuit against American Airlines and JetBlue begins Tuesday and the outcome could determine how closely the Biden administration examines other airline deals, including JetBlue's pending attempt to buy Spirit Airlines. The Justice Department and six states are suing American and... Read More

    September 23, 2022
    by Dan McCue
    Straight Talk Between Klobuchar, Cruz Advances Senate Journalism Antitrust Bill 

    WASHINGTON — It took two weeks of straight talk and negotiations, but in the end, a deal between Sens. Amy... Read More

    WASHINGTON — It took two weeks of straight talk and negotiations, but in the end, a deal between Sens. Amy Klobuchar, D-Minn., and Ted Cruz, R-Texas, advanced what could prove to be a highly significant antitrust bill for the news media out of a Senate committee... Read More

    September 19, 2022
    by Dan McCue
    Administrative Law Judge Dismisses Antitrust Charges Related to Cancer Detection Tests

    WASHINGTON — An administrative law judge has dismissed an antitrust complaint brought against DNA sequencing provider Illumina, Inc. related to... Read More

    WASHINGTON — An administrative law judge has dismissed an antitrust complaint brought against DNA sequencing provider Illumina, Inc. related to its proposed $7.1 billion acquisition of GRAIL, Inc., the major developer of a multi-cancer early detection test. The tests are noninvasive, early detection liquid biopsy tests... Read More

    News From The Well
    scroll top