New Jersey files antitrust case vs. Amazon

New Jersey Attorney General Jennifer Davenport has filed a federal antitrust lawsuit against Amazon in the U.S. District Court for the District of New Jersey. The action targets Amazon’s conduct in the market for delivery driver services tied to its vast e‑commerce and logistics operations. The state alleges that Amazon’s practices undermine competition and harm workers within its contracted delivery network.

The complaint centers on Amazon’s dealings with third‑party Delivery Service Partners (DSPs), which operate local delivery fleets that handle packages for the company. Prosecutors assert that Amazon’s structure and contractual arrangements in this network give it outsized power in the labor market for delivery drivers.

The lawsuit alleges that Amazon exercises monopsony power in the market for delivery driver services. In this framing, Amazon is portrayed as a dominant buyer of such services, with leverage that can affect wages and working conditions for a large number of drivers. The complaint describes DSPs as economically dependent on Amazon and unable to operate independently in the broader delivery market.

State prosecutors say this dependence leaves DSPs unable to compete for drivers by offering higher pay or better conditions. The filing argues that this dynamic lets Amazon hold driver wages down relative to what might prevail in a more competitive environment. The state claims this has broader consequences for labor standards in the delivery sector.

Beyond alleged wage effects, the lawsuit challenges several Amazon practices that the state contends limit competition for labor. The complaint states that Amazon prevents delivery workers in its network from unionizing. It also alleges that contractors participating in the DSP program are restricted from hiring one another’s drivers.

New Jersey argues these restrictions suppress mobility and bargaining power for drivers. The state maintains that reduced competition for their labor leads to lower pay and harsher working conditions than drivers should otherwise face. The complaint characterizes these outcomes as the product of Amazon’s overwhelming power in the delivery labor market.

In announcing the case, Davenport said Amazon built a company worth trillions while subjecting drivers in its delivery network to artificially low pay and punishing conditions. She linked these alleged outcomes directly to Amazon’s power over the labor market for delivery services.

The lawsuit seeks to challenge Amazon’s current delivery‑labor arrangements under federal antitrust law. As of the filing, representatives from Amazon had not immediately responded to requests for comment. The case adds a significant state‑level legal challenge focused specifically on Amazon’s logistics and labor practices in its delivery network.