EC Formally Investigating Amazon for Anti-Competitive Conduct

/ 3 years ago
EC Formally Investigating Amazon for Anti-Competitive Conduct

Amazon is feeling the pressure from the European Commission (EC). There is now officially a formal investigation underway on whether the retail giant breaches competition rules in the European Union.

The commission acknowledges Amazon’s dual role as a platform: I.E. (i) it sells products on its website as a retailer; and (ii) it provides a marketplace where independent sellers can sell products directly to consumers.

EC Formally Investigating Amazon for Anti-Competitive Conduct

Since Amazon continuously collects data about the activity on their platform, including from independent sellers. So the commission is looking into how Amazon is using this information, and whether it is stifling competition.

What Trade Laws are Relevant in Amazon’s Case?

Article 101 of the TFEU prohibits anti-competitive agreements and decisions of associations of undertakings that prevent, restrict or distort competition within the EU’s Single Market.

Additionally, Article 102 of the TFEU prohibits the abuse of a dominant position. Furthermore, the implementation of these provisions is defined in the Antitrust Regulation (Council Regulation No 1/2003), which can also be applied by the national competition authorities.

What is the Commissioner Saying About This Investigation?

European consumers are increasingly shopping online. E-commerce has boosted retail competition and brought more choice and better prices,” says Margrethe Vestager. “We need to ensure that large online platforms don’t eliminate these benefits through anti-competitive behaviour.”

The EC has actually begun questioning merchants regarding Amazon’s data collection last year.

What Will Happen if Amazon is Found in Breach of Rules?

If the commission determines that there are violations in anti-trust rules, Amazon could pay up to 10% of global annual revenues.

Last year, the EC ordered Google to pay $5 billion fine. for abusing their control of Android.

Topics: , , ,


By supporting eTeknix, you help us grow and continue to bring you the latest newsreviews, and competitions. Follow us on FacebookTwitter and Instagram to keep up with the latest technology news, reviews and more. Share your favourite articles, chat with the team and more. Also check out eTeknix YouTube, where you'll find our latest video reviews, event coverage and features in 4K!

Looking for more exciting features on the latest technology? Check out our What We Know So Far section or our Fun Reads for some interesting original features.

eTeknix Facebook eTeknix Twitter eTeknix Instagram eTeknix Instagram
  • Be Social With eTeknix

    Facebook Twitter YouTube Instagram Reddit RSS Discord Patreon TikTok Twitch
  • Features

Send this to a friend