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Amazon Addresses Regulator’s Concerns over Its Use of Seller Data and Favoritism

Amazon
Amazon Addresses Regulators' Concerns over Its Use of Seller Data and Favoritism

Amazon reached an agreement with the European Commission which had alleged in its findings that Amazon’s reliance on marketplace sellers’ non-public business data to calibrate its retail decisions distorted fair competition on its platform and prevented effective competition.

The Commission said it had also preliminarily concluded that Amazon’s rules and criteria for the Buy Box and Prime unduly favored its own retail business as well as marketplace sellers who use Amazon’s logistics and delivery services.

The European Commission outlined the commitments Amazon made to address its concerns in a press release on Tuesday. The Commission said the commitments would remain in force for seven years in relation to Prime and the display of the second competing Buy Box offer, and five years for the remaining parts of the commitments. “Under supervision of the Commission, an independent trustee will be in charge of monitoring the implementation and compliance with the commitments.”

Source: European Commission

Amazon told CNN in a statement it was pleased to have resolved the EU matter but continued to disagree with some of the European Commission’s initial competitive concerns. “We have engaged constructively to ensure that we can continue to serve customers across Europe and support the 225,000 European small and medium sized businesses selling through our stores,” a company spokesperson told CNN.

According to CNBC, Amazon had faced a fine of $47 billion had it not reached an agreement with the European Commission. It said the changes apply only to the European Economic Area and the company will have until June 2023 to implement the changes, which will remain in place for five to seven years.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

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Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

One thought on “Amazon Addresses Regulator’s Concerns over Its Use of Seller Data and Favoritism”

  1. So sad that our U.S. Governernment does not care about that. The “S.2992 – American Innovation and Choice Online Act” has no movement since 03/02/2022. Just another lots of blablabla from our politicians. Meanwhile, Amazon and Co had plenty time to gather their lobby against this S.2992 bill.

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