Amazon just got caught running a secret price manipulation operation with Levi's, Home Depot, Walmart, and many more.
This situation is unfolding through a massive antitrust lawsuit led by California Attorney General Rob Bonta, where recently unsealed documents describe a pretty aggressive "price-fixing" strategy by Amazon. Basically, the state argues that Amazon used its massive market power to force brands like Levi’s and Hanes into a corner. Amazon would reportedly find a lower price for a product on a site like Walmart or Target, send that link to the brand, and demand they get the other retailer to raise their price. In one specific example, Amazon allegedly pressured Levi's to get Walmart to hike the price of a pair of khakis from $25 to $30 just so Amazon didn't have to compete with the lower price.
The filings suggest that if these brands didn't play ball, Amazon would retaliate by burying their products in search results or stripping them of the "Buy Box," which effectively kills their sales. This allegedly created an artificial "price floor" across the entire internet, meaning shoppers couldn't find a better deal anywhere else because Amazon was essentially managing the competition's pricing through the vendors. While Amazon claims their practices are actually about keeping prices low for customers, this evidence is a huge part of the lead-up to a major trial set for early 2027. It also ties into the FTC’s separate investigation into "Project Nessie," which was a secret algorithm Amazon supposedly used to test how high they could raise prices before competitors stopped following their lead.