Amazon Faces New Antitrust Suit From Beleaguered Rival Zulily

Amazon.com Inc. is facing a new antitrust suit from Zulily Inc. over claims the e-commerce giant sought to destroy the upstart rival by employing an illegal scheme designed to eliminate price competition among all online retailers.

Amazon punished merchants that offered products on competing platforms such as Zulily at lower prices, according to a complaint filed Monday in the US District Court for the Western District of Washington. Zulily, a Seattle-based online retailer offering items including clothing and toys, competes with Amazon for relationships with many of the same merchants.

As a result of Amazon’s alleged conduct, Zulily lost nearly ...