SEATTLE, September 2, 2025 – Amazon.com Inc (AMZN.O) must face a nationwide class action lawsuit alleging the e-commerce giant violated antitrust laws by restricting third-party sellers from offering lower prices elsewhere1. The ruling exposes Amazon to potentially significant damages while highlighting growing regulatory scrutiny of Big Tech’s marketplace practices.
- Federal judge allows nationwide class action to proceed against Amazon
- Lawsuit covers buyers purchasing five-plus items since May 2017
- Claims focus on alleged anti-competitive pricing restrictions on sellers
Legal Framework and Market Context
The class action includes U.S. buyers who purchased five or more new goods from third-party sellers on Amazon since May 26, 20171. This timeline captures a substantial portion of Amazon’s marketplace growth, as third-party sales now represent more than half of the company’s total retail volume.
The lawsuit alleges Amazon enforced “price-parity” agreements preventing third-party sellers from marketing lower prices on competing platforms4. Such restrictions, plaintiffs argue, artificially inflated consumer prices across the broader e-commerce ecosystem.
Antitrust Claims and Enforcement
The case centers on Amazon’s alleged use of anti-discount policies that penalized merchants offering goods at lower prices outside its marketplace4. Legal firm Hagens Berman, representing the plaintiffs, filed the action claiming Amazon violated antitrust price-fixing laws2.
This private litigation coincides with broader regulatory pressure, including the Federal Trade Commission’s September 2023 lawsuit alleging Amazon illegally maintains monopoly power8. The FTC case, joined by 17 state attorneys general, targets similar competitive practices across Amazon’s business model.
Broader Regulatory Landscape
Amazon faces multiple class action challenges beyond pricing restrictions. A separate August lawsuit targets the company’s Prime Video service for allegedly misleading consumers about digital movie and TV show “purchases” that constitute temporary licenses3.
The company’s legal exposure extends across its ecosystem, with various cases challenging everything from seller agreements to consumer disclosure practices. These cases collectively represent potential damages in the hundreds of millions of dollars.
Market Implications
The ruling allows plaintiffs to proceed with damages claims covering millions of Amazon customers over an eight-year period. For investors, the case represents both direct financial risk and broader regulatory uncertainty affecting Amazon’s marketplace operations.
Amazon’s third-party marketplace generates high-margin revenue through seller fees and advertising, making any restrictions on these practices potentially material to future earnings. The company has not yet responded to requests for comment on the latest ruling.
Not investment advice. For informational purposes only.
References
1(2025). “Amazon must face US nationwide class action over third-party sales”. Reuters. Retrieved September 2, 2025.
2“Amazon.com Antitrust Class Action (De Coster)”. Hagens Berman. Retrieved September 2, 2025.
3(August 25, 2025). “Amazon Sued By Users Over Movie, TV Show Purchases Involving”. The Hollywood Reporter. Retrieved September 2, 2025.
4(August 14, 2025). “Massive class action alleges Amazon forced anti-discount policy on merchants”. Top Class Actions. Retrieved September 2, 2025.
5“Amazon antitrust class action over third-party restrictions trimmed but to move forward”. Top Class Actions. Retrieved September 2, 2025.
6“Amazon.com, Inc.”. ClassAction.org Legal News Wire. Retrieved September 2, 2025.
7(January 2, 2025). “Amazon must face part of online retailer’s pricing lawsuit, US judge rules”. Reuters. Retrieved September 2, 2025.
8(September 26, 2023). “FTC Sues Amazon for Illegally Maintaining Monopoly Power”. Federal Trade Commission. Retrieved September 2, 2025.
9(January 11, 2024). “Understanding the Tradeoffs of the Amazon Antitrust Case”. Harvard Business Review. Retrieved September 2, 2025.