Groundbreaking Antitrust Lawsuit: New Jersey Sues Amazon Over “Monopsony” Exploitation of Delivery Drivers
the staff of the Ridgewood blog
TRENTON, N.J. — In a historic legal move, New Jersey Attorney General Jennifer Davenport has filed a landmark antitrust lawsuit against e-commerce titan Amazon. The suit alleges that Amazon uses its overwhelming market dominance to suppress driver wages, stifle competition, block unionization, and impose harsh working conditions on thousands of delivery drivers across the state.
The lawsuit—filed in the U.S. District Court for the District of New Jersey against Amazon.com Services, LLC and Amazon Logistics, Inc.—marks the first time any U.S. state has brought a monopsony conduct complaint against the retail giant.
What is Monopsony Power—and How Is Amazon Alleged to Use It?
While a monopoly involves a single dominant seller, a monopsony occurs when a single dominant buyer controls a market—in this case, the labor market for delivery services.
According to the complaint, Amazon exploits its position as the primary purchaser of delivery labor to artificially suppress wages and control working conditions without giving workers a competitive alternative.
“Today, my office is acting to stand up for thousands of New Jersey delivery drivers who are being exploited every day by one of the world’s biggest, richest corporations,” said Attorney General Davenport. “Amazon built a company worth trillions while subjecting drivers in its delivery network to artificially low pay and punishing working conditions.”
The Delivery Service Partner (DSP) Illusion: “Independent” in Name Only
At the center of the lawsuit is Amazon’s Delivery Service Partner (DSP) program, launched in 2018. While Amazon frames DSP owners as independent small-business entrepreneurs, the state argues that Amazon retains complete control over every aspect of their operations, including:
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Complete Operational Control: Amazon provides the branded vans, delivery routes, uniforms, and mandatory tracking software.
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Wage Suppression & “No-Poach” Rules: Amazon restricts DSPs from hiring drivers from other DSPs within its network, eliminating wage competition.
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Strict Hiring Authority: The state alleges Amazon controls driver hiring and firing decisions across the entire network.
Because DSPs are entirely economically dependent on Amazon, they are unable to compete for talent by offering higher pay, better benefits, or improved working conditions.
AI Surveillance, Drones, and Harsh Work Metrics
The complaint paints a grim picture of daily conditions for DSP drivers, highlighting aggressive surveillance and anti-union tactics:
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Intensive Monitoring: Drivers are closely tracked via in-vehicle cameras, AI systems, and real-time route software.
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Union Busting & Intimidation: The lawsuit alleges Amazon deployed surveillance drones near facilities where drivers attempted to organize. In one instance, Amazon terminated a DSP’s contract in retaliation for union organizing, forcing the company to shut down and laying off its workforce.
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Blacklisting Workers: Former employees who supported union activities were allegedly rejected or fired by other DSPs in the Amazon network.
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Punishing Delivery Quotas: Unrealistic delivery targets reportedly force drivers to endure higher injury rates and resort to extreme measures—such as urinating in water bottles inside their vans—to meet daily metrics.
Legal Claims & Mounting Pressure on Amazon
The lawsuit charges Amazon with violating Sections 1 and 2 of the federal Sherman Antitrust Act as well as the New Jersey Antitrust Act. The State of New Jersey is seeking:
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Treble Damages to compensate DSP drivers for lost back pay.
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Permanent Injunctive Relief to dismantle Amazon’s anticompetitive labor practices.
This action joins a growing list of major legal challenges against Amazon by New Jersey authorities, including an ongoing FTC joint lawsuit over e-commerce price manipulation, civil rights cases over the treatment of pregnant and disabled workers, and labor actions regarding driver misclassification in the Amazon Flex program.
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The AG should do something about the rampant crime in the inner cities and prosecute fully those responsible for breaking the law.
These “independent delivery drivers” are the biggest exploitation of the poor in recent memory.
Uber, Lyft, Door Dash, Amazon.
They get paid peanuts and run their cars into the ground.