Amazon strikes deal with European Commission

Amazon has avoided a potentially significant fine after reaching an agreement with the European Commission over competition concerns.

The Commission launched a formal investigation in July 2019 into Amazon’s use of non-public market place seller data. A second probe was then launched in November 2020 into how access was granted to the ‘buy box’ and Prime programme.

The Commission concluded that Amazon’s reliance on marketplace sellers’ non-public business data to "calibrate" its retail decisions distorted fair competition. It also concluded that the way the ‘buy box’ was managed led to preferential treatment of Amazon’s retail business or of sellers that used Amazon’s logistics and delivery services.

Brussels can fine companies found in breach of competition rules. But on Tuesday it was confirmed that an agreement had been reached instead, with Amazon committing to ensuring that it does not use marketplace seller data for its own retail operations and that it grants non-discriminatory access to the ‘buy box’ and Prime.

The commitments, which are legally binding, cover all of Amazon’s current and future marketplaces in the European Economic Area, excluding Italy, and will be in force for up to seven years.

Should they be breached, the Commission could impose a fine of up to 10% of Amazon’s total turnover.