Seattle-based online retailer Zulily, owned by private equity firm Regent LP, has filed a lawsuit against e-commerce giant Amazon in the U.S. District Court for the Western District of Washington. The suit alleges that Amazon engaged in bullying and price gouging tactics, resulting in significant revenue losses for Zulily.
The legal action comes after Zulily’s recent announcement of layoffs and closures of operations. According to the company, these actions were necessary due to financial struggles caused by Amazon’s alleged plot against them.
Zulily has also closed its headquarters and warehouses in Nevada and Ohio while putting its Belltown offices up for rent earlier this year. This move follows a 17% decline in revenue during the first quarter of 2023.
This latest development highlights an ongoing battle between Seattle-based e-commerce companies as Zulily fights back against what it perceives as unfair competition from rival Amazon.