Amazon Sued by New Jersey Over Monopolistic Treatment of Delivery Drivers

New Jersey Attorney General Jennifer Davenport has filed a federal lawsuit against Amazon, claiming that the e-commerce giant's monopolistic practices are harming delivery drivers. According to the suit, Amazon prevents workers from unionizing and limits their pay by leveraging its power over delivery companies.

The state officials say that Amazon is a monopsonist, or a dominant buyer of specific goods or services that can control or dictate the terms of payment for the services it demands. This allows Amazon to exert undue influence in its delivery service partner program, launched in 2018.

Delivery service partners contracted by Amazon rely on Amazon's infrastructure, package processing and delivery routes, and are beholden to Amazon's demands. The tech giant tries to keep these contractors small to limit their bargaining power, according to the suit.

In March, a delivery business in Edison, New Jersey warned drivers that Amazon would cut the company's contract if they attempted to unionize. This move was similar to Amazon's termination of a contract in Queens, which resulted in 150 drivers losing their jobs.