BNPL provider Sezzle has filed a lawsuit against Shopify, claiming that the e-commerce platform has been suppressing competition.
In the complaint lodged in the US District Court for the District of Minnesota, Sezzle accuses Shopify of violating antitrust laws. The lawsuit alleges that Shopify has engaged in “monopolistic and anticompetitive business practices” to undermine competition in the BNPL market.
According to the suit, Shopify utilized its market power to make its own BNPL options the default choice on merchant websites. The Canadian company introduced Shop Pay Installments in 2021 through a partnership with BNPL provider Affirm.
Sezzle asserts that Shopify has “rigged the checkout process on merchants’ websites,” making it significantly challenging for consumers to opt for alternative BNPL providers. Furthermore, the lawsuit claims that Shopify has coerced millions of merchants into anticompetitive contracts that penalize them financially for using Sezzle’s services.
Sezzle is seeking triple damages and an injunction to prevent Shopify from continuing these alleged practices. Charlie Youakim, CEO of Sezzle, stated, “This action is an important step in ensuring that merchants and consumers have access to diverse and innovative payment solutions of their choice.”