Connecticut has joined 16 other states and the Federal Trade Commission in suing Amazon. The online retailer is being accused of using coercive tactics to maintain a monopoly.
Connecticut Attorney General William Tong said the complaint alleges Amazon’s conduct prevents current and future competitors from attracting shoppers and sellers.
“What we have discovered after a very exhaustive investigation — thousands and thousands of documents working with the Federal Trade Commission — is that Amazon’s dominance and all that we love about Amazon, comes at a huge cost to consumers and small businesses," Tong said.
Tong noted it is not that the way Amazon does business that is a crime, but how it uses its dominance is. He described the company's marketing fulfillment and delivery system as a "flywheel" sweeping in "every seller and buyer in it's path."
Some of the alleged tactics include unfair fees and costly fulfillment service for sellers, junk ads and biased search results that prioritize Amazon’s own products.
“The biggest of the big players use their monopoly power to dominate the marketplace, to punish and shut down competitors so they’re the only option," Tong added.
Approximately 16,000 Connecticut residents are employed by Amazon, with large fulfillment centers in North Haven and Windsor.
