On Tuesday, the EU regulators charged Amazon for distorting online retail competition and initiated a second investigation into the online retailer’s business practices, according to the Financial Times. Investigations into Amazon’s dual role as a marketplace for merchants and a rival seller started July last year, following traders’ complaints about the retailer’s practices.
- The European Commission has been investigating how Amazon uses sensitive merchant data to select winners for its “buy box” that allows customers to add items from a specific retailer into their shopping carts.
- Amazon has shown preferential treatment of its own retail offers and marketplace sellers who use its logistics and delivery services-EU.
- The EU has insisted that data on third-party sellers’ activity should not be used to benefit Amazon since the retailer is a competitor to the sellers.
- Amazon has requested a closed-door hearing to defend itself after disagreeing with the EU charges.
- The EU could impose up to 10% fine on Amazon’s global revenue with a decision outcome expected next year.
- Amazon charges come after the EU imposed large fines on Google and other companies
Amazon stock is currently declining. AMZN: NASDAQ is down on premarket 2.00%
