New Jersey Sues Amazon

New Jersey has filed a lawsuit against Amazon in federal court. The state authorities accuse the company of engaging in anti-competitive practices against independent delivery companies and their drivers.

According to the prosecution, Amazon imposes conditions on partners participating in its Delivery Service Partner program that negatively impact driver compensation and working conditions. The lawsuit also states that the company restricts partner companies' ability to hire each other's employees and prevents drivers from unionizing.

According to New Jersey's attorney general, this is the first case in which the state has taken alleged monopsony violations to court. Monopsony is a situation in which a single large employer on the market has so much influence that it effectively controls labor conditions and compensation.

Amazon denies the allegations. According to a company representative, partner companies operate their businesses independently, while employees have full rights to change employers and join unions.

This is not the only antitrust case against Amazon. The company faces similar legal disputes with the U.S. Federal Trade Commission and the state of California.

Source: Investing.com