December 4, 2020

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According to the European Commission, Amazon is abusing power

According to the European Commission, Amazon is abusing power

The American e-commerce giant Amazon is violating European competition rules in online retail. That is what the European Commission says for the time being. The committee is also launching a second investigation into another possible violation.

Amazon itself sells products to consumers on the platform, but external sellers can also sell things there.

According to Margrethe Vestager, EU competition commissioner, Amazon uses data about these external sellers – such as the number of orders – to its advantage when competing with these sellers. That would mean abuse of power, because Amazon can, for example, concentrate on the best-selling products.

“In view of the booming e-commerce and the leading e-commerce platform from Amazon, fair and unadulterated online access to consumers is important for all sellers,” says Vestager.

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Amazon will now have the opportunity to comment on the results of the committee. If the company is ultimately found guilty, the commission can impose a fine of up to 10 percent of annual sales. Amazon had sales of more than $ 280 billion last year.

The committee also opened a second investigation. Amazon’s own offers and those of third-party providers who use Amazon’s logistics services can be given preference.