New Jersey filed an antitrust suit against Amazon on Tuesday, alleging that the company exerts its power over third-party delivery contractors to suppress competition and harm those workers.
Amazon doesn’t employ its delivery drivers, it contracts with third-party delivery companies to carry the packages from the warehouse to peoples’ doorsteps. Those companies are completely dependent on Amazon and Amazon will not let them hire each others’ workers. It is a monopsony lawsuit, and New Jersey Attorney General Jennifer Davenport alleges that Amazon exerts its total market power to offer those workers artificially low pay and subject them to harsh working conditions.
From CNBC:
The complaint alleges that DSPs are “economically dependent on Amazon” and are unable to operate independently from the company, “leaving them unable to compete for drivers by offering higher pay or better conditions, which is what allows Amazon to hold driver wages down.”
Bad Democrat 
Leave a comment