New Jersey attorney general sues Amazon over alleged anticompetitive practices affecting delivery drivers
TRENTON, N.J. — New Jersey Attorney General Jennifer Davenport has filed an antitrust lawsuit against Amazon, alleging the company unlawfully maintains dominance over delivery drivers in its Delivery Service Partner (DSP) network by suppressing competition in the labor market.
The complaint, filed in the U.S. District Court for the District of New Jersey, alleges Amazon uses its market power to prevent unionization, restrict delivery companies in its network from hiring one another’s drivers and otherwise limit competition for delivery driver labor. According to the lawsuit, those practices have resulted in lower wages and harsher working conditions for thousands of New Jersey drivers.
The lawsuit names Amazon, Amazon.com Services LLC and Amazon Logistics Inc. It is the first monopsony conduct complaint of its kind brought by a state, according to the attorney general’s office.
“Today, my office is acting to stand up for thousands of New Jersey delivery drivers who are being exploited every day by one of the world’s biggest, richest corporations,” said Attorney General Davenport. “As our complaint alleges, Amazon built a company worth trillions while subjecting drivers in its delivery network to artificially low pay and punishing working conditions thanks to its overwhelming power in the labor market. I will continue to fight monopolies and the devasting effects they have on our residents.”
According to the complaint, Amazon’s DSP program, created in 2018, labels participating delivery companies as independent businesses while maintaining significant control over operations. The lawsuit alleges Amazon sets operational requirements, monitors driver performance, controls delivery routes and limits the ability of DSPs to hire drivers from one another.
The complaint further alleges Amazon monitors drivers through artificial intelligence, in-vehicle cameras and other technology, and has responded to suspected union organizing with intimidation and retaliatory route reallocations. It also alleges the company has used “no-poach” agreements that prevent DSPs from hiring each other’s workers, limiting competition for drivers.
State officials contend Amazon’s control extends to the routes drivers take, the uniforms they wear, the software they use and the branded delivery vans they operate, leaving DSPs unable to compete by offering higher wages or improved working conditions.
The lawsuit alleges Amazon’s conduct violates Sections 1 and 2 of the federal Sherman Antitrust Act as well as the New Jersey Antitrust Act. The state is seeking treble damages for lost compensation allegedly suffered by DSP drivers and a court order permanently prohibiting the alleged anticompetitive practices.
The attorney general’s office noted the lawsuit is one of several pending cases against Amazon. Other ongoing litigation includes antitrust claims related to online marketplace practices, a civil rights lawsuit alleging discrimination against pregnant workers and workers with disabilities, and a lawsuit alleging Amazon misclassified Flex delivery drivers as independent contractors. The office said a trial court recently denied Amazon’s motion to dismiss the civil rights case.
