[German]Amazon has reached a settlement with EU antitrust authorities in a competition case involving allegations that Amazon is hindering competition on its platform by using non-public data. Amazon has pledged to treat all sellers equally and make competitors' products more visible in Amazon's "Buy Box," which generates the bulk of purchases on the site.
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In July 2019, the EU Commission launched a formal investigation into Amazon's use of non-public data from marketplace sellers. On November 10, 2020, the Commission adopted a Statement of Objections making a preliminary finding that Amazon is dominant in the French and German markets for the provision of online marketplace services to third-party sellers.
The EU Commission also found that Amazon's reliance on non-public business data from marketplace sellers to calibrate its retail decisions distorts fair competition on its platform and prevents effective competition.
In parallel, on November 10, 2020, the Commission opened a second investigation to examine whether Amazon's criteria for selecting Buy Box winners, which allow sellers to offer products under its Prime program, result in preferential treatment of Amazon's retail business or sellers that use Amazon's logistics and delivery services.
In the second investigation, the Commission came to the preliminary conclusion that Amazon abused its dominant position in the French, German and Spanish markets to provide online marketplace services to third-party sellers.
It also came to the preliminary conclusion that Amazon's Buy Box and Prime rules and criteria unduly favored its own retail business as well as marketplace sellers who use Amazon's logistics and delivery services.
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Now Amazon and the EU Competition Commission have reached an agreement. Amazon will treat all sellers equally in the future and make competitors' products more visible in Amazon's Buy Box, which generates the bulk of purchases on the site. Amazon will also create a second Buy Box that will display alternative offers for buyers who care less about speed of delivery.
The commitments offered apply to all of Amazon's current and future marketplaces in the European Economic Area. They exclude Italy for the Buy Box and Prime commitments, as the Italian Competition Authority imposed remedies on Amazon for the Italian market in its November 30, 2021 decision.
The final commitments will be in place for seven years with respect to Prime and the notification of the second competing Buy Box offer, and for five years with respect to the remaining parts of the commitments. Under the Commission's oversight, an independent trustee will be appointed to monitor the implementation of and compliance with the commitments.
If Amazon were to breach the commitments, the Commission could impose a fine of up to 10% of Amazon's total annual turnover without having to establish a violation of EU antitrust rules, or a penalty payment of 5% of Amazon's daily turnover for each day of non-compliance.
"Amazon can no longer abuse its dual role and will have to change several business practices," said Margrethe Vestager, the EU's competition commissioner. "Competing independent retailers and shippers, as well as consumers, will benefit from these changes, which will give them new opportunities and more choice." Amazon avoided a fine as a result of this settlement.
