Zulily Sues Amazon for Anticompetitive Practices, Citing Role in Its Downfall

Seattle-based online retailer Zulily (ZU), which recently announced its closure, has filed a lawsuit against Amazon (AMZN), accusing the e-commerce giant of “anticompetitive business practices” that contributed to its downfall. The lawsuit, filed in Seattle on Monday, alleges that Amazon's policies deterred merchants from using platforms other than Amazon.com, directly impacting Zulily's business operations.

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In the complaint, Zulily claims that Amazon's tactics led to a significant loss of sellers on its platform, media reports said. Over one year, Zulily lost half of its merchants who also sold products on Amazon. The company alleges that Amazon penalized sellers who used both platforms by forcing them to raise prices on Zulily, remove products, or cease selling on Zulily entirely, according to a report in Seattle Times. This move by Amazon, as per Zulily, caused a substantial decline in its vendor base and business.

Lawsuit at FTC