Zulily, an online retailer, has taken legal action against Amazon.com in a federal court in Seattle. They claim that Amazon engaged in a price-fixing plan. Apparently, the corporate giant took this step to “ruin” Zulily by pressuring them to give up their discounted sales approach.
Zulily, headquartered in Seattle, lodged a lawsuit on Monday. The said lawsuit accuses Amazon of restraining retail price competition. This step of theirs goes against U.S. and state antitrust regulations.
According to Zulily, their suppliers feared repercussions from Amazon regarding pricing matters. Consequently, these suppliers advised Zulily to maintain prices that were “equivalent” to those on Amazon’s platform.
The complaint highlighted Zulily as an online retailer committed to providing customers with affordable prices. However, this led to them making Zulily a casualty of Amazon’s actions.
An Amazon spokesperson stated that the claims asserted in this lawsuit are untrue and highlighted the retail industry’s resilience with numerous successful retailers.
Amazon is currently entangled in various antitrust litigations from consumers and different plaintiffs, including California, the District of Columbia, and the U.S. Federal Trade Commission.
The FTC, in its September lawsuit accusing Amazon of misusing its market dominance, referenced Zulily to support its assertions. Zulily, which Regent, a private investment firm, acquired in May, specializes in selling toys, clothing, and home goods.
Recently, Amazon requested the Seattle court to dismiss the FTC’s case, contending that the agency failed to demonstrate any harm to consumers due to “standard retail practices.