E-commerce giant Amazon (AMZN) is facing new claims that it pressured major brands, including Levi Strauss (LEVI), to raise prices on competing retail websites. According to newly unsealed court documents, this may have affected prices on platforms run by Walmart (WMT), Target (TGT), Home Depot (HD), and Chewy (CHWY). These allegations are part of an antitrust lawsuit filed by California Attorney General Rob Bonta, who claims that Amazon used its size and influence to keep prices higher than they should be.
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Forget margin or options. Here's how the pros trade AMZNThe filing also says that Amazon would contact suppliers whenever it noticed lower prices on competing sites. In those situations, the company allegedly told vendors to “fix” the pricing, and sometimes warned them of negative consequences if they did not act. As a result, suppliers are said to have worked with other retailers to raise prices across multiple platforms. The documents outline more than 15 examples of this behavior that cover products ranging from clothing and furniture to electronics and household goods.
However, it is important to note that the filing does not show direct communication between Amazon and rival retailers. Instead, it focuses on how suppliers responded after being contacted. At the same time, this lawsuit is only one of several antitrust cases that Amazon is dealing with. Regulators at both the state and federal levels have raised similar concerns, and multiple trials are expected to take place in 2027. California officials are also asking the court to temporarily stop the alleged behavior before the trial begins, with a hearing scheduled for July.
Is Amazon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on AMZN stock based on 42 Buys and three Holds assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMZN price target of $286.23 per share implies 15.6% upside potential.
