News

Amazon faces antitrust probe from European regulators over third-party seller data

July 23, 2019

The European Commission has opened a formal antitrust probe into Amazon regarding whether its use of third-party seller data on its marketplace violates competition regulations. 

Commissioner Margrethe Vestager, who is in charge of competition policy, said that European consumers are increasingly shopping online and e-commerce has consistently created better pricing and greater choice, which raises concerns about Amazon's practices. 

The preliminary information gathered by regulators shows that Amazon uses sensitive data it collects from these third-party sellers regarding their products and transactions sold through the marketplace, according to the announcement. 

"We need to ensure that large online platforms don't eliminate these benefits through anti-competitive behavior," she said in the announcement. "I have therefore decided to take a very close look at Amazon's business practices and its dual role as marketplace and retailer, to assess its compliance with EU competition rules."

The probe will look specifically at two areas: The seller agreements that Amazon signs with marketplace sellers and how they use data they have access to.

The role of data in the selection of the "Buy Box," which is a box displayed prominently on the site, lets customers select items from a specific retailer. 

A spokesperson for Amazon told Mobile Payments Today that, "We will cooperate fully with the European Commission and continue working hard to support businesses of all sizes and help them grow."