NJ antitrust suit accuses Amazon of unlawfully wielding power over delivery contractors
New Jersey's attorney general has filed an antitrust lawsuit against Amazon, accusing the company of unlawfully wielding "dominant buyer power" over its Delivery Service Partner (DSP) contractors and their drivers. The complaint alleges Amazon suppresses wages and worsens working conditions by preventing drivers from unionising and limiting competition for labour within its delivery network, and the state says it is the first monopsony conduct complaint of its kind filed by any US state. Amazon has strongly rejected the claims, calling them factually wrong and saying DSPs are independent businesses free to work with other companies.
The lawsuit, brought by AG Jennifer Davenport's office, argues Amazon behaves as a monopsonist because it is effectively the sole buyer of DSP services, leaving contractors dependent on it despite classifying them as independent operators. It cites Amazon's provision of uniforms, branded vans and set routes, along with surveillance via cameras, AI and drones—including monitoring of workers who supported unionisation—and claims implicated drivers were later rejected or fired by other DSPs. The complaint also alleges DSP drivers earn significantly less than counterparts at USPS, UPS and FedEx. Amazon spokesperson Steve Kelly disputed the characterisation, noting most routes finish on time and that the AG did not raise the central claims before filing suit; separately, Amazon's Flex programme was previously subject to an FTC probe that resulted in a $61.7 million settlement over stolen tips.
- New Jersey sues Amazon alleging abuse of power over delivery contractors
- First-ever state monopsony complaint against Amazon, AG says
- Amazon disputes claims, calls DSPs independent businesses