The EU Commission has accepted concessions from the world’s largest online retailer. It had previously identified possible breaches of EU competition law in several sectors. “The changes open up new opportunities and more choice, to the benefit of competing independent carriers and retailers, as well as consumers,” said Margrethe Vestager, European Commissioner for Competition.
Among other things, the company has been accused of systematically using non-public business data of independent retailers for its own retail business. The background is that Amazon not only sells goods as a retailer, but also makes its website available as a platform for other retailers. “Amazon can no longer abuse its dual role and will have to change several ways of doing business,” Vestager said.
More choice for consumers
Amazon has assured that, for example, data should be better protected against use by Amazon, as announced by the EU Commission. A spokesman said: “We are delighted to have allayed the European Commission’s concerns and clarified these matters.”
European consumer association BEUC has welcomed the development. Amazon’s commitments should lead the company to offer more choice, making it easier for consumers to buy the best deals, said BEUC CEO Monique Goyens.
Amazon had already announced concessions in the summer. The EU Commission then got feedback from rivals. After further adjustments by Amazon, the EU Commission then came to the conclusion that its concerns had been allayed, as can be seen from the communication from the Competition Observatory. “The Commission has therefore decided to make the proposed Final Commitments legally binding on Amazon.”
Violations can result in high fines
In July 2019, the Commission launched an investigation into possible illegal trading practices. They mainly looked at whether the group was competing unfairly with other retailers using its platform. If Amazon violates its promises, fines of up to ten percent of the company’s annual turnover could be payable.
Other commitments concern “non-discriminatory” access to the Prime programme, through which subscribed customers can also have items from other retailers delivered free of charge. Prime resellers should also be able to choose which shipping service their goods will be delivered on. In addition, there will be room for more dealers in the so-called Buy Box with featured items in the future. The offers are clearly displayed in the purchase box – the items can be purchased very easily.
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