New Jersey Attorney General Jennifer Davenport has filed a lawsuit against Amazon on antitrust grounds, alleging the company abuses its power over third-party delivery contractors to suppress competition and harm workers.
The lawsuit, filed in the U.S. District Court for the District of New Jersey, accuses Amazon of maintaining a monopsony over the market for delivery driver services.
The complaint alleges that Amazon's dominant buyer power results in lower wages and worse working conditions. It also claims that Amazon drivers earn significantly less than those working for FedEx, UPS, and the US Postal Service.
Allegations of labor and competition restrictions
According to the filing, Amazon prevents Delivery Service Partner (DSP) drivers from unionizing. The lawsuit further alleges that Amazon restricts contractors within its delivery network from hiring each other's drivers and limits competition for their labor.
The complaint alleges Amazon monitors drivers through technology including AI, cameras, and drone surveillance, noting that drones were used on some drivers who planned to strike or attempt to unionize. It also claims that some workers who supported union organizing at an Amazon delivery station were later rejected or terminated by other DSPs within the network.
While classifying DSPs as independent operators, the complaint alleges that Amazon provides drivers with branded vans, uniforms, and their specific routes.
Amazon response and regulatory context
This complaint is not grounded in fact.
Steve Kelly stated that DSPs are independent business owners who make their own decisions regarding fleet management, hiring, and capacity planning, and that they choose whether to work with companies other than Amazon. He also claimed that the Attorney General's office did not raise the central claims of the complaint with Amazon before filing the suit.
Amazon has operated its Delivery Service Partner program since 2018.
The Attorney General's office claims this is the first complaint of its kind, as no state has filed a monopsony conduct complaint until now.
