Dive Brief:
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The U.S. Justice Department Monday said it would prosecute its first e-commerce antitrust case under the Sherman Antitrust Act, which prohibits collusion on prices, among other anti-competitive activities.
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David Topkins, who was selling posters through Amazon’s Marketplace, wrote code to coordinate price changes with other poster sellers on the site. The charge against him could bring a maximum 10-year prison term and $1 million fine.
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Amazon hasn’t been charged and hasn't commented on the case.
Dive Insight:
It’s hard to know if the poster seller knew that his idea was a significant antitrust violation. In any case, the Justice Department has demonstrated that the world of eBay and other marketplace sellers — which are heavily populated by less-than-professional hawkers of all kinds of goods — with sometimes dubious origins and hazy product photos — will not escape its scrutiny.