New Jersey sues Amazon over alleged delivery labor monopsony

New Jersey has sued Amazon on antitrust grounds, accusing the company of using monopsony power (dominance in a labor-buying market) over third-party delivery contractors to suppress competition and harm workers. Attorney General Jennifer Davenport said Amazon's delivery service partner program prevents drivers from unionizing, bars contractors in its network from hiring one another's drivers and reduces competition for labor, which the state says leads to lower wages and harsher working conditions. The complaint, filed in U.S. District Court for the District of New Jersey, argues that Amazon's contracted delivery companies are economically dependent on the retailer and cannot independently compete for drivers by offering higher pay or better terms. Amazon did not immediately respond to a request for comment. The lawsuit adds to broader scrutiny from regulators, lawmakers and labor advocates over Amazon's contractor-based last-mile delivery model, which the company has used since 2018 to reduce reliance on UPS and FedEx while speeding up package deliveries.