New Jersey Challenges Amazon's DSP Model in Antitrust Suit

Amazon

New Jersey has sued Amazon, alleging that the company unlawfully uses its power over Delivery Service Partners (DSPs) and their drivers to suppress competition, wages, and working conditions. The case targets the structure behind Amazon’s local package-delivery network rather than the marketplace’s seller rules, but its implications reach every operator that depends on predictable last-mile service.

According to the New Jersey Attorney General, Amazon controls key terms of DSP operations while treating those businesses as independent contractors. The complaint alleges restrictions affecting driver hiring and organizing, along with operational control that leaves DSPs with limited ability to compete independently. Amazon disputes the state’s characterization; NBC News reported that the company called the claims wrong and said its program offers entrepreneurs support and drivers competitive pay.

For sellers, the immediate takeaway is continuity planning, not a sudden change to Fulfillment by Amazon. The lawsuit has only begun, and no court has ruled on the allegations. Still, litigation over the DSP model can raise compliance costs, reshape contractor agreements, or create regional delivery uncertainty if remedies eventually alter how routes and labor are managed.

Operators should track delivery promises and late-delivery patterns by region, keep customer-service scripts ready for carrier disruption, and avoid building promotions around a single fulfillment assumption. Brands using Seller Fulfilled Prime or merchant fulfillment should also maintain backup carrier capacity and review whether their shipping economics can absorb short-term changes in last-mile pricing.

The broader signal is that logistics governance is becoming part of marketplace risk. Sellers already monitor fees, inventory placement, and account policy; they should now add regional labor and antitrust developments to that dashboard, especially when a platform’s delivery network is central to the customer promise.

Sources

← Back to News