New Jersey is taking Amazon to federal court, accusing the retail giant of using its enormous power over its delivery network to suppress competition for workers, keep wages lower and impose difficult working conditions on thousands of delivery drivers. Amazon disputes the allegations and says the state’s characterization of its delivery system is inaccurate.
TRENTON, NJ — New Jersey Attorney General Jennifer Davenport has filed an antitrust lawsuit against Amazon, alleging that the company unlawfully uses its dominant position in the package-delivery market to control the small businesses and drivers responsible for bringing Amazon packages to customers.
The lawsuit, filed August 4 in federal court in New Jersey, focuses on Amazon’s Delivery Service Partner program, known as DSP, through which independent delivery companies operate Amazon-branded vans and employ drivers who deliver packages.
New Jersey Says Amazon Has Too Much Control
Although DSP companies are technically independent businesses, the state alleges Amazon controls major parts of their operations, including delivery routes, performance standards and other aspects of their work.
The complaint argues that Amazon has what antitrust law calls monopsony power — dominant power as a buyer of services that can allow a company to influence compensation and working conditions.
According to the state, Amazon’s system leaves many DSP companies heavily dependent on Amazon while limiting their ability to compete for other business.
That, New Jersey argues, ultimately affects the drivers themselves.
Allegations of Lower Wages and Fewer Job Options
The lawsuit alleges that Amazon’s practices restrict competition among DSP companies for drivers, potentially reducing workers’ ability to move between employers in search of better pay or conditions.
New Jersey also claims DSP drivers earn substantially less than comparable delivery workers at UPS, FedEx and the U.S. Postal Service while facing demanding delivery quotas and extensive electronic monitoring.
The complaint also alleges that Amazon discouraged union organizing and retaliated against delivery contractors connected to organizing efforts.
Attorney General Davenport has argued that the issue goes beyond the relationship between Amazon and individual delivery companies because thousands of New Jersey workers may be affected.
Amazon Rejects the Allegations
Amazon strongly disputes New Jersey’s claims.
An Amazon spokesperson said the complaint is not grounded in fact and argued that DSPs are independent businesses that make their own decisions on matters including hiring, fleet management and operational capacity.
Amazon also says DSP companies can choose to work with businesses other than Amazon.
The company maintains that the state’s description of working conditions and Amazon’s control over the delivery network does not accurately reflect how the DSP program operates.
What New Jersey Wants From the Court
New Jersey is asking the court to stop the practices it alleges are anticompetitive and is seeking damages and other relief.
The state is also seeking protections intended to prevent alleged retaliation against DSP companies while the lawsuit moves through the courts.
The case could have implications well beyond New Jersey because Amazon’s DSP model is a major part of the company’s delivery network nationwide.
For now, the allegations remain claims made in a civil lawsuit, and Amazon will have an opportunity to challenge them in court.
Source: New Jersey Office of the Attorney General (@NewJerseyOAG) on X, August 13, 2026.
By NJ RADAR Team