Amazon will no longer dictate how companies price their products

Amazon will no longer dictate how companies price their products
The e-commerce company used to prohibit third-party sellers from listing products on other sites for less. (Source: CNN)

(CNN) - Amazon sellers now have a little more freedom when it comes to pricing their products.

Amazon has changed its policy for third-party sellers.

The e-commerce company used to prohibit third-party sellers from listing products on other sites for less.

But Amazon confirmed Monday it won't do that anymore effective immediately.

"Amazon's price parity provisions may raise prices for consumers both in the short term and in the long run," Senator Richard Blumenthal wrote in letters to the DOJ and FTC in December. "Relatedly, Amazon's price parity provisions may work to block the emergence of more efficient online marketplaces that might offer consumers lower prices on their favorite goods."

The change comes amid concern that the stipulation, called price parity, could be in violation of U.S. Anti-Trust Law.

The company recently backed out of its plan to build a huge campus in Long Island City.

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