Amazon Accused of Using Market Dominance to Suppress Driver Wages and Unionization
New Jersey Attorney General Jennifer Davenport has filed an antitrust suit against Amazon, alleging that the online shopping giant used its market dominance to suppress wages and unionization efforts among its delivery drivers. The lawsuit claims that Amazon's 'Delivery Service Partner' program is a 'monopsony,' where Amazon heavily controls the market and uses its power to cut down on competition.
Amazon's DSP program, launched in 2018, allows small businesses to hire drivers and deliver packages for Amazon. However, Davenport argues that these businesses are not truly independent but rather 'creatures of Amazon' who are beholden to the company's demands.
The complaint alleges that Amazon controls the drivers' delivery routes, monitors driver performance using GPS tracking, artificial intelligence, and cameras, and suppresses unionization efforts through no-poach agreements. The lawsuit also claims that Amazon terminated or rejected delivery drivers who participated in strikes or union activities.