Tech

EU Commission allegedly facing formal competition complaints against Amazon

According to a media report, the European Commission is about to accuse Amazon of officially anti-competitive behavior in dealing with dealers on its own platform. The Wall Street Journal reports that the Brussels authorities will send statement of objections to Amazon next week or the week after, on which the US company can then comment. The commission wants to accuse Amazon of collecting data from retailers on the marketplace in order to develop its own products and compete with retailers.

Amazon’s dealings with its own marketplace have long been the focus of antitrust authorities in Europe and the USA. There, retailers can sell their items on the Amazon website and, if necessary, also access the Group’s logistics infrastructure. According to the company, more than half of the global gross sales generated through Amazon come from these sellers. The Wall Street Journal reported in April that Amazon used sales data from individual products from marketplace retailers to develop lucrative competitor products under its own label.

Margrethe Vestager, the EU’s competition commissioner, has now apparently gathered enough information to make Amazon the allegation. The According to the report, the so-called Statement of Objections is forthcoming is a formal step in investigating suspected anti-competitive practices. The parties will be informed of the points in writing and can then view the files and comment. If the EU Commission comes to the conclusion that there is sufficient evidence of violations, it can prohibit the conduct and impose fines of up to 10 percent of global annual sales.


(mho)

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