WASHINGTON—A former executive of an e-commerce business that sold posters, prints and framed art admitted that he conspired with others to fix the prices of posters sold through Amazon Marketplace, the officials announced today.
Officials stated that David Topkins and his co-conspirators agreed to fix the prices of certain posters sold in the U.S. through Amazon Marketplace. They did this by adopting specific pricing algorithms for the sale of certain posters.
Topkins agreed to pay a $20,000 criminal fine and cooperate with the department’s ongoing investigation. He is also facing a sentence of up to 10 years in prison when he is sentenced
This was the federal government’s first online marketplace prosecution, officials said.
“Today’s announcement represents the division’s first criminal prosecution against a conspiracy specifically targeting e-commerce,” said Assistant Attorney General Bill Baer of the Department of Justice’s Antitrust Division.
Adding, “We will not tolerate anticompetitive conduct, whether it occurs in a smoke-filled room or over the Internet using complex pricing algorithms. American consumers have the right to a free and fair marketplace online, as well as in brick and mortar businesses.”
The goal was to coordinate changes to their prices by writing computer code that instructed algorithm-based software to set prices in conformity with this agreement, officials claim.
The price fixing took place from September 2013 until January 2014, according to authorities.
“These charges demonstrate our continued commitment to investigate and prosecute individuals and organizations seeking to victimize online consumers through illegal anticompetitive conduct,” said Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office.