According to the European Commission, Amazon is in breach of competition rules. Competition Commissioner Margrethe Vestager argues that the web giant uses data from third-party sellers on the marketplace to favour its own business.
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Vestager formally charges Amazon with abuse of power. The company abuses all kinds of data, such as the number of products sold or how often other sellers’ offers are viewed. In doing so, Amazon “bypasses the risks of competing with other shops”. This allows the web giant to offer identical products at a lower price.
Last July, the European Commission launched an investigation into possible distortions of competition by Amazon. Jeff Bezos’ company is both a market place and a seller. Vestager is now of the opinion that it is indeed abusing this dual role. The American web giant will still have the opportunity to defend itself. Afterwards, the committee can still impose a fine or demand adjustments.
Vestager also announces a new investigation, this time focused on Amazon’s logistics and delivery services. The web giant is suspected of prioritizing its own supply and that of retailers using Amazon’s logistics services. The so-called Prime subscription will also be examined. The committee wants to know how sellers on the platform can reach Prime customers.
