California officials say Amazon He may have quietly driven up prices online by pressuring retailers and brands not to undercut his listings, according to newly unsealed court evidence.
The allegations, revealed Monday in the state’s antitrust lawsuit, claim that Amazon worked behind the scenes with companies like Levi Strauss and others to influence the prices of its competitors, including WalmartHome Depot and Chewy.
In one example cited by the state, Levi’s allegedly pushed Walmart to raise the price of khaki pants after Amazon raised concerns about a lower listing. In another, Amazon encouraged suppliers to coordinate price increases on products like pet treats – moves California This helped Amazon avoid having to match lower prices.
“As we are not a party to this litigation, we have no comment on the allegations in question,” a Levi Strauss spokesperson said.
FOX Business reached out to Walmart, Home Depot and Chewy.
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A worker near packages in an Amazon delivery vehicle in San Francisco, California, United States, Monday, February 2, 2026. (David Paul Morris/Bloomberg via Getty Images)
State officials say this behavior was not isolated, but part of a broader strategy applied to multiple product categories over several years. The filing describes three alleged tactics: encouraging competitors to raise prices, temporarily halting price matches so that higher prices remain, and, in some cases, completely removing lower-priced products from competing sites.
In some cases, sellers reportedly pulled products from competing retailers entirely, eliminating cheaper options before prices increased on Amazon and elsewhere.
The filing also claims that Amazon enforced compliance by leveraging its market power, including threatening to remove product listings, limit promotions, or impose financial penalties on suppliers who allowed lower prices on other platforms.
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Officials say sellers often had no choice but to comply, given Amazon’s size and importance to their business.
“Amazon illegally seeks to profit by ensuring that consumers have nowhere to turn for lower prices,” Attorney General Rob Bonta said in a statement.
Attorney General Rob Bonta speaks to the media at UC Irvine in Irvine, California on June 16, 2025. (Paul Bersebach/MediaNews Group/Orange County Register via Getty Images)
Amazon has denied the allegations, saying its agreements with sellers are legal and help ensure competitive pricing and product availability. The company said it was “consistently identified as America’s lowest-cost online retailer” and called the lawsuit an attempt to distract from a weak case.
The filing also alleges that Amazon discouraged employees from documenting sensitive pricing discussions in writing, instead encouraging the use of phone calls.
The Amazon logo is displayed on the facade of the Amazon Germany headquarters in Parkstadt Schwabing, Munich, Bavaria, January 27, 2026. (Matthias Balk/photo alliance via Getty Images)
The case comes as Amazon’s size continues to grow — the company recently surpassed Walmart in annual revenue — intensifying scrutiny over its influence over online prices.
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California is seeking to block the alleged practices and recoup the profits, with a hearing scheduled for July and a trial in January 2027.
Reuters contributed to this report.
