Online retailer Zulily sues Amazon for "bullying" behavior
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Zulily, an online retailer owned by private equity firm Regent LP, is shutting down and blaming Amazon via an antitrust lawsuit.
Why it matters: This isn't the first time that an e-commerce company has accused Amazon of abusing its market power, although it's the first to leverage information contained in the FTC's recent lawsuit.
Flashback: Zulily once was an e-commerce darling and an early VC-backed "unicorn," going public in 2013 at a $2.7 billion valuation. Two years later it was acquired by Liberty Interactive's QVC for upwards of $2.4 billion in cash and stock.
- Zulily focused on products for parents of young kids, and often touted on its website how its prices were cheaper than those of Amazon.
- According to its lawsuit, however, Amazon in 2019 began targeting Zulily by, among other things, forcing common suppliers to require that Zulily raise its prices on their products so as to match Amazon's.
- Earlier this year the company was sold to private equity firm Regent LP for an undisclosed amount. Regent isn't mentioned at all in the 57-page lawsuit, including if it was aware of the issues Zulily was having with Amazon.
What they're saying: "The plot against Zulily was part of Amazon's overall scheme … to make Amazon's prices appear—falsely—to be the lowest," reads the lawsuit.
The other side: The lawsuit's allegations are false, Tim Doyle, an Amazon spokesperson said in an emailed statement.
- Many small and medium size businesses "are thriving, growing and innovating," including many in Amazon's store, he said.
- "We're proud of the substantial investments we make to provide entrepreneurs with tools and resources to establish and build their brands, connect with more customers, and create jobs in their communities."
State of play: The suit comes as Seattle-based Zulily had reportedly plans to lay off more than 800 people in three states and is closing its doors.
- The company said on its website, ""All sales are final during Zulily's going-out-of-business sale," according to GeekWire, although the language has since been removed.
- The shutdown also isn't mentioned on its website.
- Zulily and Regent didn't return requests for comment.
Editor's note: This story has been updated with a comment from Amazon.
Read the lawsuit:
