New Jersey sues Amazon on antitrust grounds, alleging it unlawfully wielded its power over delivery contractors
📰 source: cnbc_topnews · 💼 business
new jersey attorney general jennifer davenport sued amazon on tuesday, alleging the company used its power over delivery contractors to suppress competition and harm workers. the complaint, filed in u.s. district court for the district of new jersey, says amazon has a 'monopsony' over the market for delivery driver services — meaning it's the dominant buyer of labor in that market, giving it outsized control over wages and conditions.
davenport's office says amazon prevents delivery workers from unionizing, stops contractors in its delivery network from hiring each other's drivers, and limits labor competition, which leads to artificially low pay and harsher working conditions. 'amazon built a company worth trillions while subjecting drivers in its delivery network to artificially low pay and punishing working conditions thanks to its overwhelming power in the labor market,' davenport said. amazon called the complaint 'not grounded in fact' and said delivery service partners are independent business owners who make their own decisions.
the suit adds to growing scrutiny of amazon's delivery service partner program, launched in 2018. that model lets amazon rely on thousands of small contracted companies for last-mile delivery, cutting its dependence on ups and fedex. new york city is weighing a law that would force amazon to employ delivery partners directly; amazon has said it might move delivery operations outside the city in response.
why it matters: state antitrust suit targeting amazon's labor-market power could reshape its delivery model and raise costs for the company.
source: cnbc_topnews
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