UK competition watchdog is investigating whether Amazon is giving an unfair advantage to merchants who pay for additional services
UK competition watchdog is investigating whether Amazon is giving an unfair advantage to merchants who pay for additional services
Britain’s competition watchdog is investigating whether Amazon is hurting competition and harming consumers by giving an unfair advantage to merchants who pay for additional services.
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competition and Market The authority’s formal investigation said on Wednesday that it would look into concerns that the e-commerce giant is abusing its dominance to undermine rivals, similar to those carried out by the EU’s executive commission and Germany’s antitrust agency. The sound of inquiry.
Amazon said it would work closely with the CMA during the investigation.
“We believe that we have always worked hard to help little ones” businesses To be successful selling on Amazon is in their and our best interest,” the company said. “We are proud of the continued support we provide to businesses of all sizes across the UK”
While Amazon supplies some of the products it sells online, many others are from third-party merchants and retailers, and provide the services they need to make the sale.
The market authority said it would consider whether Amazon gives an unfair edge to merchants who use alternative services, which incur additional costs, including storage, packaging and delivery.
With millions of customers in the UK, “it is appropriate that we carefully examine whether Amazon is using third party data to unfairly promote its retail business and whether it is in favor of sellers who use its logistics and use of delivery services – both can undermine competition,” Sarah Cardell, the watchdog’s general counsel, said in a prepared statement.
Ms Cardell said it is also important to have a competitive market for British merchants selling on Amazon.
“Any loss of competition is a disadvantage for consumers and could lead to them paying more for products, being offered lower quality items or having fewer options,” Ms Cardell said.
The investigation will focus on how Amazon chooses suppliers for the so-called buy box, which shows customers one-click “buy now” or “add to basket” options. The eligibility criteria for offers under the Premium Prime label and collection and use of data is also under scrutiny.