Amazon could end two EU antitrust investigations by the end of the year after tweaking concessions to address concerns about its use of sellers’ data. Resolving the EU investigation means the company will avoid fines of up to 10% of its global turnover.
The European Commission filed a lawsuit against Amazon in 2020, accusing the online giant of abusing its size and market power to promote its own products and gain an advantage over third-party rivals also active on Amazon’s platform. The investigation also revolves around whether Amazon gives special treatment to sellers who use Amazon FBA when shipping.
Under EU law, Amazon could be required to pay up to 10 percent of its global revenue as compensation if the investigation proves the allegations against the company are true. It was the fear of the 10% fine that prompted Amazon to seek a settlement, according to the sources.
The EU has until the end of the year to make a decision, which is why Amazon is insisting on reaching a settlement before it decides. Meanwhile, Amazon has also changed its data policy after the allegations, which is hurting third-party sellers.
YCD learned that these actions have caused huge economic losses to small businesses. According to experts, they can’t compete with a big company like Amazon anyway.
Amazon’s accusation is not only collecting data on third-party sellers who sell on its platform, but also using it as a basis to launch its own products to compete with the seller’s popular products.
Third-party products rank behind their own products in the user’s search results. That said, Amazon unfairly takes advantage of its platform in a variety of ways that are considered a violation of the rules of open competition.
Following the allegations, Amazon in July offered not to use sellers’ data for its own product business. Another concession Amazon has made is to treat sellers equally when it comes to evaluating them for “buybox” access.
Asked for comment, Amazon reiterated that it has engaged constructively with the European Commission to address their concerns.