A U.S. judge signaled a likely denial of California's preliminary injunction request against Amazon.com Inc. which sought to immediately stop the company's alleged price-fixing practices.
California's 2022 lawsuit alleges Amazon uses "most favored nation" clauses in seller contracts to prevent third-party vendors from listing products at lower prices on Walmart or eBay than on Amazon. The state argued these practices stifle competition and inflate consumer prices.
A preliminary injunction would have forced Amazon to alter these seller policies while the main case proceeded. The judge's decision to reject it means California must prove its antitrust claims at trial without immediate operational relief, potentially extending the legal timeline into late 2025.
The ruling reflects the high bar courts set for injunctive relief in antitrust cases and comes as federal and state regulators intensify scrutiny of major technology companies. The Federal Trade Commission has pursued similar actions against large tech firms for alleged anti-competitive behavior.
California Attorney General Rob Bonta's office has not indicated whether it will appeal the preliminary injunction decision.
