European Executive Vice-President Margrethe Vestager gives a press conference on an anti-trust case with the multinational technology company, Amazon website at European Commission in Brussels on November 10, 2020.
Olivier Hoslet | AFP | Getty Images
LONDON — The European Commission said Tuesday that Amazon breached European antitrust rules by using independent sellers’ data for its own benefit.
It has also announced a second formal investigation into the company’s e-commerce processes.
In a statement, the Commission said Amazon was using the data of third-party sellers – such as order numbers, revenues and number of visitors – to inform its strategic business decisions, like reducing the price of products.
The issue arises because of Amazon’s dual role which sees it both selling products itself, and acting as a platform for independent – sometimes rival – sellers.
“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,” Margrethe Vestager, the EU’s competition chief, said in the statement.
The decision comes after the Commission, which is the executive arm of the European Union, launched a probe into the online retailer in July 2019 on the back of concerns over anti-competitive behavior.
Amazon said it disagreed with the Commission’s assertions and “will continue to make every effort to ensure it has an accurate understanding of the facts.” It said that it represents less than 1% of the global retail market.
“No company cares more about small businesses or has done more to support them over the past two decades than Amazon,” the e-commerce giant said.
The Commission’s second antitrust investigation will be into possible preferential treatment of Amazon’s own retail business and sellers that use its logistics and delivery services (known as “fulfilment by Amazon” sellers). The probe will look at, among other things, how the company choses which sellers offer products via Amazon Prime, its paid-for premium service.
The company will have now the chance to examine the Commission’s conclusions and reply in writing or via an oral hearing.
Clarification: The European Commissions has confirmed that its Statement of Objections, published Tuesday, does not constitute legal charges against Amazon.
