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New Jersey Sues Amazon, Alleges Monopsony Over Delivery Contractors

The lawsuit says Amazon's control of its Delivery Service Partner network blocks higher pay and union organizing by enforcing strict rules on contractors.

Overview

  • New Jersey's attorney general filed a federal antitrust complaint in U.S. District Court in New Jersey that accuses Amazon of abusing market power over its network of Delivery Service Partners.
  • The complaint alleges Amazon enforces rules that stop delivery workers from unionizing, bar contractors from hiring each other's drivers, and keep driver pay and conditions low.
  • Prosecutors frame the case as a monopsony claim, arguing Amazon is the dominant buyer of driver services so small contractors cannot compete for labor by offering higher wages.
  • Amazon has maintained in past statements that delivery partners run their own operations, and CNBC reported company representatives did not immediately respond to the New Jersey filing.
  • The lawsuit joins other policy efforts, including a New York City proposal to require direct employment of DSPs, and could affect worker pay, delivery operations and local costs if courts or lawmakers impose remedies.