European regulators are reportedly set to investigate whether Amazon’s marketplace favors its branded products.
The European Union (EU) investigation is “likely” to come next year, Reuters reported Thursday (Nov. 21), citing sources with direct knowledge of the matter.
The eCommerce giant could face a fine of as much as 10% of its annual turnover if found guilty of violating the EU’s Digital Markets Act (DMA), which is aimed at curbing the power of the world’s tech giants.
According to the report, when and if an investigation actually occurs depends on incoming EU antitrust chief Teresa Ribera, who is expected to begin her tenure next month.
Amazon said it complies with the DMA and has worked with the European Commission (EC) on its plans since two of its services were designated as “gatekeepers” between businesses and consumers under the act.
The DMA, which went into effect in 2023, bars Amazon and other tech giants from showing preference to their products and services on their platforms.
The EC said earlier this year it was compiling facts related to Amazon’s treatment of its branded products on its marketplace.
The news comes as Amazon is dealing with antitrust regulations in other jurisdictions. The U.S. Federal Trade Commission (FTC) filed its antitrust lawsuit against the company in September of last year, alleging that Amazon penalizes sellers who list products for lower prices elsewhere.
The commission has also accused Amazon of requiring sellers to use its fulfillment services to gain more visibility and better placement on its platform, practices that the regulator argues harm both competition and consumers.
“The practices the FTC is challenging have helped to spur competition and innovation across the retail industry, and have produced greater selection, lower prices and faster delivery speeds for Amazon customers and greater opportunity for the many businesses that sell in Amazon’s store,” David Zapolsky, Amazon senior vice president of global public policy and general counsel, told PYMNTS at the time.
Amazon is also facing a class action lawsuit from consumers that mirrors the complaints in the FTC suit. The company had tried to have that suit dismissed last month, but a federal judge this week ruled that the case can proceed.
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