California says Amazon pushed other stores to hike prices

California is turning up the heat on Amazon with fresh allegations that the tech giant manipulated pricing across the broader retail market. In an unredacted court filing made public Monday, state attorneys laid out claims that Amazon pressured not just its own sellers but also other retailers to raise prices on identical goods, reducing competition and inflating costs for consumers.

The filing is part of an ongoing antitrust lawsuit led by California Attorney General Rob Bonta. It argues that Amazon used its massive market presence to discourage lower pricing, effectively steering the entire market toward higher price points. According to the state, the company set terms for third-party sellers that made it difficult or unprofitable to offer lower prices elsewhere, a practice known as 'most favored nation' clauses.

But the new details go further. The state says Amazon also communicated directly with other retailers-stores that sell the same products through their own websites or platforms-urging them to keep prices in line with Amazon's. These behind-the-scenes discussions, officials claim, helped create a de facto price floor, making it harder for any retailer to undercut the competition.

Consumer advocates say this kind of behavior undermines the promise of a free online marketplace. "When one company can quietly shape prices across the entire retail landscape, it stops being about competition and starts being about control," said one policy analyst familiar with the case. "That's bad news for shoppers, especially on everyday items."

Amazon has pushed back, calling the allegations misleading. In a statement, the company said it doesn't dictate pricing to other retailers and that sellers are free to set their own prices wherever they choose. "We compete every day to offer great prices," the statement read. "Customers can and do find lower prices elsewhere-that's how the market works."

Still, the case taps into growing scrutiny of how dominant tech platforms influence the economy. Regulators across the U.S. and Europe have been examining whether companies like Amazon, Google, and Apple use their scale to tilt the playing field. California's lawsuit, if successful, could lead to changes in how Amazon structures its seller agreements and communicates with retail partners.

For now, the legal battle is just beginning. But the stakes are high-not just for Amazon, but for how online commerce operates in the U.S. If courts side with California, it could open the door to tighter rules on pricing practices in digital marketplaces.