The Commission’s Amazon case is arguably the most high-profile of the ongoing antitrust cases. It said Amazon had used data on third-party sellers that use its marketplace to boost sales of its own-label goods. An Amazon warehouse in France. What happens to your body in extreme heat? Keywords. The company is accused of abusing its dual role as a store for other merchants and a seller of its own products. “We must ensure that dual role platforms with market power, such as Amazon, do not distort competition,” said Margrethe Vestager, the European Commission’s vice president for digital issues. The European Commission has formed a preliminary view that Amazon has breached Article 102 of the Treaty on the Functioning of the European Union by … In Amazon's case, her focus is also on its access to huge amounts of data about which products from the third-party sellers on its Marketplace are selling well. "No company cares more about small businesses or has done more to support them over the past two decades than Amazon.". Margrethe Vestager, a European Commission vice president, said Amazon was unfairly using data to box out smaller competitors. “We must ensure that dual role platforms with market power, such as Amazon, do not distort competition,” Margrethe Vestager, the commission’s vice president for digital issues, said in a statement. I refuse cookies . See all EU institutions and bodies. Under these commitments, Amazon (the largest distributor of e-books in Europe) will no longer enforce or introduce a variety of "most favoured nation" (MFN) clauses in its distribution agreements with e-book publishers in Europe. The authorities accused Amazon of harvesting nonpublic data from sellers who use its marketplace to spot popular products, then copy and sell them, often at a lower price. In a statement, the EU's Competition Commissioner Margrethe Vestager said it was vital that platforms with "market power" did not "distort competition". NI ministers 'gravely concerned' at street violence1, Myanmar ex-ambassador to UK locked out of embassy2, Biden to target 'ghost guns' with new measures3, 'Strong' evidence found for a new force of nature4, Kardashian tries to get photo wiped off the web5, Navalny 'losing sensation in legs and hands'6, ‘Please don’t lend Kenya more money’7, Beijing now has more billionaires than any city9, Are pay-by-the-minute booths the future of work?10. It’s looking intoreports that the company uses sales data … The EU’s Competition Commission has opened a formal antitrust investigation into Amazon. The European Commission has received an appeal from trade unions to investigate Amazon’s efforts to spy on employees, the Guardian reported yesterday. If fined, Amazon could have to pay up to 10% of its annual global reve… The EU’s executive Commission also opened a second investigation Tuesday into whether Amazon favors product offers and merchants that use its own logistics and delivery system. The European Commission decided on Wednesday (17 July) to launch an antitrust investigation into US online retailer Amazon over its use of merchants' data, in a case that could set a precedent. The main complaint is that Amazon uses non-public business data of independent sellers who sell on its marketplace, to the benefit of Amazon’s own first party product business, which directly competes with those third party sellers. The suspected foul play takes two forms. Amazon rejected the charges, saying no firm "cared more" for small businesses. The European Commission today announced that it has opened a formal antitrust investigation on Amazon. The European authorities spent two years investigating Amazon’s dual role as both a store and seller of its own goods. Ms. Vestager has warned that the biggest companies will only grow stronger without tougher antitrust enforcement and new regulations, blocking new companies and innovations from emerging. The European Commission has been investigating Amazon since July last year, following complaints from traders. Amazon denied any wrongdoing and said it supported thousands of businesses in Europe. The report found that Amazon possessed "significant and durable market power" in online shopping, which it furthered in part by "anticompetitive conduct in its treatment of third-party sellers". (BRUSSELS) - The European Commission opened a formal investigation Wednesday into whether Amazon's use of sensitive data from independent retailers selling on its 'marketplace' breaches EU competition rules. “This is a case about big data,” Ms. Vestager said. The main problem for Amazon is that it acts both as a retailer and a marketplace. Daily news 8 March 2021. European Commission charges Amazon over misuse of seller data The retailer is accused of using third-party seller information to build its own products. Antitrust: Commission seeks feedback on commitments offered by Amazon in e-book investigation: 19.01.2017: Antitrust: Commission welcomes steps taken by Amazon/Audible and Apple to improve competition in audiobook distribution: 26.07.2016: Antitrust: Commission accepts commitments by Paramount on cross-border pay-TV services: 22.04.2016 In October Amazon hit back in a blog post on its website: "The fact that third parties having the opportunity to sell right alongside a retailer's products is the very competition that most benefits consumers and has made the marketplace model so successful for third-party sellers". The European Commission today announced that it has opened a formal antitrust investigation on Amazon. In Brussels, Amazon has been gearing up for a legal fight. "Amazon represents less than 1% of the global retail market, and there are larger retailers in every country in which we operate," it said. The real-time information that Amazon collects includes order totals, number of visitors to certain products and a merchant’s revenue. She has led the way in tightening the regulatory screw on the US tech giants, taking on both Google and Apple. The Trump administration has criticized Ms. Vestager for aiming at American companies like Apple, even as it initiated its own investigations of the industry. Cookies. It also pointed out that there are more than 150,000 European businesses selling through its online marketplace. Jennifer Rankin in Brussels. The European Commission, the executive branch of the 27-nation bloc, said Amazon had abused its dual role as both a store used by scores of vendors and a merchant that sells its own competing goods on the platform. Amazon Charged With Antitrust Violations by European Regulators, https://www.nytimes.com/2020/11/10/business/amazon-eu-antitrust.html. The companies have reached such a size, she has argued, that they are essentially micro-economies, setting rules and policies with little transparency that determine the fate of millions of other businesses that have no choice but to follow along. The European Commission (EC) is the executive branch of the European Union (EU). Amazon’s fulfillment centre in Dandenong, Victoria. Amazon presumably makes more money from selling something itself and the European Commission has got a feeling that the company has its thumb on the scales in order to disadvantage its own partners, so it’s launching an investigation. The European commission has demanded Amazon pay €250m in back taxes. European Commissioner for Competition Margrethe Vestager is guarded about the nature of her investigation, but has stressed that it focuses on data usage and the way that Amazon has a hybrid role as both a shop and a platform for other sellers. "With e-commerce booming, and Amazon being the leading e-commerce platform, a fair and undistorted access to consumers online is important for all sellers.". It has hired a team of lawyers and economists, including several who in the past were encouraging tougher enforcement against Google and Microsoft. India ignores Covid surge to hold IPL cricket tournament, Covid-19: The disinformation tactics used by China. The European Commission has today presented a proposal on pay transparency to ensure that women and men in the EU get equal pay for equal work. The European Commission has informed Amazon of its preliminary view that it has breached EU antitrust rules by distorting competition in online retail markets. Amazon has been charged by the European commission with using the sales data of independent retailers selling through its site to illegally gain an advantage in the European marketplace. The European Commission, the executive branch of the 27-nation bloc, said Amazon had abused its dual role as both a store used by scores of vendors and a … Photograph: Reed Saxon/AP. Amazon argues that it makes up only a small sliver of the global retail market, and that for many smaller merchants the company is the main gateway to online sales. (BRUSSELS) - The European Commission opened a formal investigation Wednesday into whether Amazon's use of sensitive data from independent retailers selling on its 'marketplace' breaches EU competition rules. Announcing the decision, the European commissioner … The European Commission today announced that Amazon has breached EU antitrust rules by distorting competition in online retail markets. Commission sends Statement of Objections to Amazon for the use of non-public independent seller data and opens second investigation into its e-commerce business practice: Multilingual 17.07.2019: Press Release: Commission opens investigation into possible anti-competitive conduct of Amazon: en: 17.07.2019: Opening of Proceedings Find out more on how we use cookies and how you can change your settings. Search engine Google, for example, has been fined more than €8bn in three separate cases, all relating to alleged abuses of power in the EU. Amazon rejected the European Commission's accusations and said it supports thousands of businesses in Europe. Cookies. All official European Union website addresses are in the europa.eu domain. The complaint was sent to Commissioners Nicolas Schmit and Thierry Breton, in charge of jobs and social rights and the internal market, respectively. The European Commission has charged Amazon with abusing its dominant position in online retail to gain an unfair advantage over competitors. Document type. Critics of Amazon cheered the European decision. Filter by. The EC’s Cloud Strategy, published in May 2019, sets out a vision for cloud computing as an enabler of the Commission’s digital transformation. The BBC is not responsible for the content of external sites. While acknowledging the importance of e-commerce in boosting retail competition online, with more choice and better prices, Competition Commissioner Margrethe Vestager said large … Now Europe's Competition supremo Margrethe Vestager has Amazon in her sights - and once again this case is about platform power. Find out more on how we use cookies and how you can change your settings. The Commission also launched a fresh probe into the possible preferential treatment of sellers that use the tech giant's logistics services. Former top EU official Viviane Reding has raised questions about Luxembourg's handling of privacy complaints following a POLITICO report detailing allegations against e-commerce giant Amazon, amid wider calls for investigation.. The European Commission has adopted a decision that renders legally binding the commitments offered by Amazon. The main complaint is that Amazon uses non-public business data of independent sellers who sell on its marketplace, to the benefit of Amazon’s own first party product business, which directly competes with those third party sellers. The European Commission is nearing a decision on its investigation into Amazon, with the European Union competition chief saying over the weekend that the Commission has gathered a lot of information on the eCommerce company.. Are pay-by-the-minute booths the future of work? "Data on the activity of third party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers," she added. Monika Pronczuk contributed reporting from Brussels. How do you weigh up the risks of the AZ vaccine? Worries about Amazon’s power have only grown during the pandemic, as internet sales have become increasingly vital to businesses grappling with lockdowns and lost foot traffic. The European Union has launched a formal investigation into Amazon, opening a new front against the US tech giants.. “Data on the activity of third-party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers.”. European Commission cracks down on Amazon, finding e-commerce giant breached anti-competition rules. Last month, the Justice Department brought antitrust charges against Google, and Apple and Facebook are also facing investigations in both Washington and Brussels. Communication from the Commission published pursuant to Article 27(4) of Council Regulation (EC) No 1/2003 in Case AT.40153 — E-book MFNs and related matters: Multilingual 24.01.2017: Press Release: Antitrust: Commission seeks feedback on commitments offered by Amazon in e-book investigation: en: 13.01.2017: Proposed Commitments The European Commission said it had also started a parallel investigation of Amazon policies around its “buy box,” an important piece of real estate on Amazon’s website that makes it easy for consumers to quickly click to make a purchase. European Commissioner for Competition Margrethe Vestager discusses why the E.U. VideoCovid-19: The disinformation tactics used by China, Call My Agent star joins plea to reopen French theatres, 'I can't change my gender unless I'm sterilised' Video'I can't change my gender unless I'm sterilised', A shrinking river sparks a fight for water access, ‘Please don’t lend Kenya more money’. There will also be questions about whether there is any real harm to consumers. The case reinforces the European Union’s role as a leading tech-industry watchdog, even as past investigations of companies like Google have done little to diminish their power. The European Union is set to file formal antitrust charges against Amazon over its use of third-party seller data, The Wall Street Journal reports.The charges, which could be … In July, the European Commission opened a formal investigation into Amazon to assess whether the e-retailer was complying with European rules on treating data from independent retailers. In a statement Amazon insisted that - far from being anti-competitive - its private-label products were good for customers and offered more choice. Many in Europe will be watching to see how the Amazon announcement is received by the incoming administration of President-elect Joseph R. Biden Jr., who is expected to pursue policies that limit the industry’s power. Amazon hit with EU antitrust charges, new accusations of abusing dominance. This case won't be settled quickly - Amazon claims it makes more money from third-party sellers than from its own products. According to a report in Seeking Alpha, EU Competition Chief Margrethe Vestager said the Commission gathered “a lot of data” in its investigation into Amazon. Since 2015, e-commerce sales in the European Union have nearly doubled to about 720 billon euros, or about $850 billion. It faces a potential fine as high as 10% of its global turnover if it is found guilty of breaching competition law - about £15bn ($19bn). Kyaw Zwar Minn spends the night in his car after saying the military attaché "occupied" the embassy. The European Commission, the executive branch of the 27-nation bloc, said Amazon had abused its dual role as both a store used by scores of vendors and a … The case, which had been expected for months, is the latest front in a trans-Atlantic regulatory push against Amazon, Apple, Facebook and Google as the authorities in the United States and Europe take a more skeptical view of their business practices and dominance of the digital economy. Olivier Hoslet/Agence France-Presse, via Pool/Afp Via Getty Images. The EU is accusing Amazon of misusing the data it collects from third-party sellers on its platform, European commissioner Margrethe Vestager announced today.The European Commission says Amazon … Next month, the European Commission is expected to unveil one of the world’s most sweeping set of regulations of the tech industry. Sellers have long raised concerns that if Amazon sees a particular product doing well on its website, the company creates its own version, sells it at a lower price and then gives it better placement on the Amazon website. Stephanie Palmer-Derrien. The European Commission has formed a preliminary view that Amazon has breached Article 102 of the Treaty on the Functioning of the European Union by … The package of laws could include rules prohibiting the self-preferencing of products and requiring the biggest companies to share data with smaller rivals. Version: 1.0.12 Last modified: Wed Nov 25 2020 04:36:00 GMT-0800 (Pacific Standard Time) Myanmar ex-ambassador to UK locked out of embassy. Video, Covid-19: The disinformation tactics used by China, 'I can't change my gender unless I'm sterilised' Video, 'I can't change my gender unless I'm sterilised', NI ministers 'gravely concerned' at street violence, 'Strong' evidence found for a new force of nature, Kardashian tries to get photo wiped off the web, Navalny 'losing sensation in legs and hands', Beijing now has more billionaires than any city, US tech giants accused of 'monopoly power', Amazon's Jeff Bezos: The richest person in the world, the coronavirus crisis has driven huge sales for the retailer, a report backed by Democratic lawmakers recently urged changes, Amazon hit back in a blog post on its website. The charges come as the coronavirus crisis has driven huge sales for the retailer, as people increasingly turn to online shopping. Ms. Vestager said it showed how Amazon used the data from outside sellers to determine what computer accessories, kitchen tools or other products to introduce, as well as where to set prices and how to manage the inventory. Read about our approach to external linking. November 11, 2020 . Meanwhile, in the United States, a report backed by Democratic lawmakers recently urged changes that could lead to the break-up of some of the country's biggest tech companies, such as Amazon, Facebook and Google. The European Commission today announced that Amazon has breached EU antitrust rules by distorting competition in online retail markets. Amazon now has a chance to respond to the charges. Margrethe Vestager, the EU commissioner in charge of competition issues, has slapped Google with antitrust fines totaling nearly $10 billion and opened twin antitrust investigations this summer into Apple. Amazon v EU: Has the online giant met its match? Her concern is that tech giants which own a platform - Apple's iOS operating system, Google's Android or Amazon's Marketplace - can have great power over the businesses that are completely dependent on it. The main problem for Amazon is that it acts both as a retailer and a marketplace. The European Commission has informed Amazon of its preliminary view that it has breached EU antitrust rules by distorting competition in online retail markets. In a press conference on Tuesday, Ms Vestager said: "We do not take issue with the success of Amazon or its size.". The EC is responsible for proposing legislation, implementing decisions, and managing the day-to-day business of the EU. Audio visual services; Press services; Eurostat; Latest . European Commission - Press Release details page - European Commission Press release Brussels, 7 October 2014 The European Commission has opened an in-depth investigation to examine whether the decision by Luxembourg's tax authorities with regard to the corporate income tax to be paid by Amazon in Luxembourg comply with the EU rules on state aid. The EU says Amazon exploits data collected from other sellers for its own benefit. The European Commission said those concerns were supported by a review of data on more than 80 million transactions and 100 million products. All official European Union website addresses are in the europa.eu domain. The European Commission has charged Amazon with abusing its dominant position in online retail to gain an unfair advantage over competitors. In the European Union, Amazon has information on about 800,000 active sellers using its platform, covering more than one billion products, according to the European Commission. It then uses this to help with sales of its own-label products, or in choosing suppliers, the Commission says. The latest: Saks will join other retailers in going fur-free. I accept cookies. EC feels that Amazon may have used sensitive data from independent retailers who sell on its marketplace, such usage is against EU competition rules. “We disagree with the preliminary assertions of the European Commission and will continue to make every effort to ensure it has an accurate understanding of the facts,” the company said in a statement. Ms. Vestager has raised alarms about the “gatekeeper” role of companies like Amazon, Apple, Facebook and Google. “Amazon, by using its very powerful position on e-commerce markets and its dual role as both retailer and marketplace, is making it more difficult for independent retailers to compete fairly,” said Agustin Reyna, director of legal and economic affairs at the European Consumer Organization, a group that has been urging regulators to act against Amazon. Read about our approach to external linking. According to the Commission, a “vast majority” of products on Amazon are sold through the Buy Box, a pop-up window showing customers additional products when they proceed with a purchase. On 4 May 2017, the European Commission announced its decision to make the commitments offered by Amazon legally binding. In August, boss Jeff Bezos became the richest man in the world with a fortune of more than $200bn after the firm's share price rocketed in the early months of the pandemic. Biden to target 'ghost guns' with new measures, Emergency talks due after night of violence in NI. It's a double whammy for Amazon in Europe, as it comes under fire from the Competition Commission twice in one day. The EU is accusing Amazon of misusing the data it collects from third-party sellers on its platform, European commissioner Margrethe Vestager announced today.The European Commission says Amazon … Amazon Bundeskartellamt Directorate General for Competition (DG COMP) European Commission Explore politico EU Brussels Latest news, analysis and comment from POLITICO’s editors and guest writers in Europe. It can take many months, or even years, before a fine and other penalties are announced. LONDON — European Union regulators brought antitrust charges against Amazon on Tuesday, saying the online retail giant broke competition laws by unfairly using its size and access to data to harm smaller merchants that rely on the company to reach customers. Under these commitments, Amazon (the largest distributor of e-books in Europe) will no longer enforce or introduce a variety of "most favoured nation" (MFN) clauses in its distribution agreements with e-book publishers in Europe. This site uses cookies to offer you a better browsing experience. Carnival Cruise Line seeks to restart its U.S. operations by midsummer. “No company cares more about small businesses or has done more to support them over the past two decades than Amazon.”. The key commercial question for many third-party merchants on Amazon is how to work the algorithm to be prominently displayed in the Buy Box. This site uses cookies to offer you a better browsing experience. But competition officials also are currently looking at multiple other issues with Google, Apple and Facebook. The European Commission (EC) has accused Amazon of violating antitrust rules by using third-party sellers’ non-public data to benefit its own retail business. European Commission opens investigation on Amazon Wednesday, 17 July 2019 Credit: pixabayThe European Commission announced on Wednesday that it has opened a formal antitrust investigation to determine whether Amazon’s use of sensitive data from independent retailers that sell on its marketplace breaches EU competition rules. In the Amazon case, the announcement on Tuesday is preliminary and just one part of the regulatory process. The European Commission, the executive arm of the European Union, has imposed a combined $9.5 billion in antitrust fines against Google since 2017, and its boss hints Amazon … has begun probing Amazon for antitrust concerns. The European Commission ramps up its campaign against scams touting phony COVID-19 cures and treatments as Europe grapples with another wave of infections. The case stems from Amazon’s treatment of third-party merchants who rely on its … About 2.3 million merchants around the world use Amazon to reach customers, including about 37 percent that rely on the company as their sole source of income, according to a U.S. congressional report published last month. It says the tech giant accesses sensitive data from small and medium-sized companies that use its platform, such as sales figures, page visits or shipping information. Covid-19: The disinformation tactics used by China. It’s looking intoreports that the company uses sales data … Search Advanced search Subscribe. The European Commission decided on Wednesday (17 July) to launch an antitrust investigation into US online retailer Amazon over its use of merchants’ data, in a case that could set a precedent. EC feels that Amazon may have used sensitive data from independent retailers who sell on its marketplace, such usage is against EU competition rules. Ms Vestager has taken a tough stance on US tech firms and what she sees as their grip on the digital landscape. She said the investigation centered on Amazon’s behavior in France and Germany, where, she said, Amazon has a “dominant” position in the market. See all EU institutions and bodies. The European Union will investigate how Amazon uses data from independent sellers, continuing an aggressive regulatory push that has already ensnared Google, Facebook and Apple. Fed minutes show officials were optimistic about the economy’s prospects. These are the first formal charges against the retail giant in a spate of antitrust probes in Europe and the U.S. The European Commission has laid out a first set of antitrust charges against Amazon focused on its dual role as a platform for other sellers but also a … The authorities in Brussels have argued that the biggest tech platforms unfairly use their power to box out competitors, through means like bundling products, charging high fees in app stores and hoarding data. On 4 May 2017, the European Commission announced its decision to make the commitments offered by Amazon legally binding. © 2021 BBC. European Commission charges Amazon over misuse of seller data The retailer is accused of using third-party seller information to build its own products. The European Commission filed antitrust charges against e-commerce retail giant Amazon on Tuesday over alleged misuse of data. The European Union is set to file formal antitrust charges against Amazon over its use of third-party seller data, The Wall Street Journal reports.The charges, which could be … I accept cookies. Commissioner Vestager says Amazon is "a highly automated company, where business decisions are based on algorithmic tools", and she believes those tools are used by the company to compete unfairly against its own business customers. Amazon declined to comment, as did the European Commission. The European Union will investigate how Amazon uses data from independent sellers, continuing an aggressive regulatory push that has already ensnared Google, Facebook and Apple. But don't expect this to be the only investigation into the might of Amazon - a Biden administration in the United States looks eager to follow Europe's lead in tackling the power of the platforms.

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