Ticker: ‘Sold by Amazon’ program ends after investigation; Tesla posts record profits

Amazon will end its “Sold by Amazon” program after an investigation by Washington state’s attorney general found it was anticompetitive and violated antitrust laws, according to court documents filed Wednesday.

The company engaged in unlawful price fixing and unreasonably restrained competition to maximize its own profits via the program that set a minimum price for certain third-party products sold on the platform, according to the lawsuit and consent decree filed in King County Superior Court in Seattle.

The Seattle Times reported that as a result of the investigation, Amazon will shut down the program nationwide and pay $2.25 million to the attorney general’s office, as well as provide annual updates on its compliance with antitrust laws.

Through the program, third-party sellers entered into an agreement with Amazon that set a minimum payment rate for products sold on the platform, according to the lawsuit. If the sales exceeded the agreed upon minimum, Amazon would take a cut of the additional revenue.

Tesla posts record profits

Tesla Inc. on Wednesday posted record fourth-quarter and full-year earnings as its deliveries soared despite a global shortage of computer chips that has slowed the entire auto industry.

The Austin, Texas, company made $5.5 billion last year compared with the previous record year of $3.47 billion in net income posted in 2020. It was the electric vehicle and solar panel maker’s third straight profitable year.

“There should no longer be doubt about the viability and profitability of electric vehicles,” the company said in a letter to shareholders.

Tesla delivered a record 936,000 vehicles last year, nearly double the 2020 figure. Fourth-quarter vehicle sales hit 308,600, also a record.

from Boston Herald https://ift.tt/3g5tPwu