On March 20, 2025, the Ninth Circuit Court of Appeals affirmed a district court’s order to dismiss a consumer antitrust lawsuit filed against Amazon. In the lawsuit styled Hogan v. Amazon.com, Inc., the consumer-plaintiffs alleged that Amazon forced third-party sellers, who desired to have their products featured in Amazon’s “Buy Box,” to purchase Fulfillment by Amazon (an Amazon logistics service) in an effort to restrain competition. By being required to purchase this service, the third-party sellers would then allegedly pass on those costs to consumers.
Background: What is the “Buy Box?”
Amazon’s “Buy Box” (now designated as the “Featured Offer” by Amazon) refers to the box that appears when one clicks on a given product. This box provides information about the product’s price, proposed delivery date, and quantity being ordered. It also consists of two buttons: “Buy Now” and “Add to Cart.” Most consumers don’t realize that when they click on either button, they are buying the product from one specific seller even though there might be several others who are offering the same product. The specific seller is chosen because it is the current “Buy Box” winner.
A seller is chosen as the current “Buy Box” winner by (1) being eligible for the “Buy Box” and (2) by Amazon’s “Buy Box” algorithm.
Eligibility requires a third-party seller to (i) have an Amazon Professional selling account that is in good standing, (ii) the item being sold is in “New” condition, and (iii) the price of the item is less than or equal to the lowest price from major retailers outside Amazon.
Once a third-party seller is eligible, Amazon’s “Buy Box” algorithm determines if that third-party seller is the current winner based on a variety of undisclosed factors.
Winning the “Buy Box” is a big deal for any seller considering a huge majority of sales (with potentially upwards of 85%) are made in the “Buy Box.”
Amazon’s “Buy Box” Prevails
As mentioned, the plaintiffs sued Amazon for alleged monopolistic practices (i.e., violating Sections 1 and 2 of the Sherman Act) relating to its “Buy Box.” The district court ultimately dismissed the lawsuit with prejudice since, among other things, the plaintiffs did not allege harm in the market where the competition was allegedly restrained, and thus there was not sufficient allegations of antitrust injury.
The plaintiffs appealed this decision, which the appellate court affirmed because although plaintiffs alleged that Amazon had retrained competition in the business-facing logistics services market, but plaintiffs’ alleged injuries occurred in the consumer-facing online retail market. These markets are distinct, so the plaintiffs did not allege a direct antitrust injury.
What Does This Mean?
With this decision, Amazon’s “Buy Box/Featured Offer” is not going away any time soon. Brands should still monitor who is regularly capturing Amazon’s buy box and take actions as necessary. Given that Amazon also monitors other ecommerce marketplaces for low prices, brands must also remain vigilant with monitoring other platforms as well.
If you have questions about this matter or its potential implications for the future, please reach out to KJK’s Litigation attorneys, Kyle Stroup (KDS@kjk.com; 216.736.7231) or Daniel Walsh (DJW@kjk.com; 614.427.5744) or anyone in KJK’s eCommerce practice group.