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Faire Wholesale Inc and rival online marketplace platform Tundra Inc sued each other in California federal court over claims that each side was using unlawful tactics to compete.
According to Tundra's lawyers, Faire "implemented and exploited" restrictive agreements to stymie online competition where independent retailers connect with smaller brands.
On the other hand, Faire's attorneys accused Tundra of unlawfully accessing non-public information from Faire's computer systems for commercial benefit.
Faire’s lawsuit was filed soon after Tundra's complaint
Faire boasts a valuation of nearly $13 billion and a marketplace of more than 700,000 retailers and 100,000 brands.
Tundra's lawsuit alleged that Faire has achieved its dominant position through anticompetitive restraints, coercion, and threatened penalties to enforce its monopoly and destroy competition.
Tundra further alleged that many retailers and brands using Faire get locked into merchant agreements that put them "entirely off limits" to competitors such as Tundra.
Tundra's site says it offers more than 10,000 brands. Tundra last year opened its "Wholesale Co-op" platform that offered retailers certain cash-back rewards. The lawsuit said Faire has made a "concerted effort to dismantle this new offering."
