New Jersey Sues Amazon Over Alleged Abuse of Delivery Contractor Power

New Jersey's attorney general has filed an antitrust lawsuit against Amazon, accusing the company of abusing its power over delivery contractors and their workers. The complaint alleges that Amazon prevents Delivery Service Partner (DSP) drivers from unionizing and limits competition for labor among contractors in the network.

The suit claims that Amazon's dominant buyer power leads to lower wages and worse working conditions for DSP drivers, who earn significantly less than those working for the US Postal Service, UPS, and FedEx. The AG's office says this is the first complaint of its kind, as no state has previously filed a monopsony conduct complaint.

Amazon started the DSP program in 2018 to build out a delivery network with third-party contractors, classifying them as independent operators. However, the AG claims that Amazon gives drivers uniforms to wear, branded vans and routes, and monitors their work using cameras, AI, and drone surveillance. The complaint also accuses Amazon of controlling DSPs' hiring practices, citing instances where workers who supported union organizing were later rejected or terminated by other DSPs in Amazon's delivery network.

Amazon spokesperson Steve Kelly disputed the allegations, saying that DSPs are independent business owners who make their own decisions about hiring and route management. He also claimed that the AG's office did not raise the central claims in the complaint before filing suit.