Aug 22 (Reuters) - An appeals court in Washington, D.C.

revived the district's lawsuit against Amazon.com Inc ( AMZN )

on Thursday, saying it plausibly claimed the online retailer's

pricing policies illegally stifle competition.

The District of Columbia Court of Appeals reversed a ruling

that had dismissed the lawsuit, which accuses Amazon ( AMZN ) of harming

competition through restrictions on its suppliers and

third-party sellers on Amazon.com ( AMZN ).

Amazon ( AMZN ) is currently seeking dismissal of another case

involving similar claims by the U.S. Federal Trade Commission

and more than a dozen states.

Amazon ( AMZN ) spokesperson Tim Doyle said the company disagrees

with the appeals court ruling and looks forward to proving its

policies benefit consumers.

"Just like any store owner who wouldn't want to promote a

bad deal to their customers, we don't highlight or promote

offers that are not competitively priced," he said.

D.C. Attorney General Brian Schwalb welcomed the court's

ruling in a statement.

"We will continue fighting to stop Amazon's ( AMZN ) unfair and

unlawful practices that have raised prices for District

consumers and stifled innovation and choice across online

retail," he said.

D.C. sued Amazon ( AMZN ) in May 2021 claiming Amazon ( AMZN ) effectively

bans third party sellers from offering products for less

elsewhere by refusing to highlight their listings if they do.

The lawsuit also claims Amazon ( AMZN ) has agreements with

wholesalers that guarantee it a minimum profit. As a result, the

complaint alleges, if Amazon ( AMZN ) lowers a price to compete with

another online seller, the wholesaler must pay Amazon ( AMZN ) the

difference between the price it sells at and the agreed minimum.

These payments are a disincentive for wholesalers to lower

prices to compete, the complaint said.

The D.C. appeals court said on Thursday the judge who

dismissed the case in May 2023 set the bar too high, and the

attorney general had a plausible claim the practices harmed

competition in the online retail marketplace.