Amazon Faces Potential EU Investigation Over Preferential Treatment Of Own Products

Amazon could be subjected to a European Union (EU) antitrust investigation next year over allegations that it favours its own brand products on its online marketplace, according to sources familiar with the matter.

The investigation would mark a significant step in enforcing the EU’s Digital Markets Act (DMA), a landmark regulation aimed at curbing the dominance of Big Tech companies.

If found guilty of violating the DMA, Amazon could face a fine of up to 10% of its global annual turnover. The DMA, which came into effect last year, prohibits major tech platforms from giving preference to their own products and services. It applies to companies identified as “gatekeepers” due to their significant market influence.

Amazon, designated as a gatekeeper under the DMA, stated it has been cooperating with EU regulators. “Amazon is compliant with the DMA and has engaged constructively with the Commission on its plans since the designation of two of its services as important gateways between businesses and consumers and thus subject to the new rules,” the company said.

The decision to launch a formal investigation will rest with Teresa Ribera, the incoming EU antitrust chief, who is set to assume office next month. Ribera will replace Margrethe Vestager, who has been a prominent figure in EU competition enforcement.

Sources indicated that Ribera would make the final determination on whether to proceed with the case in the coming months.

The European Commission, which serves as the EU’s antitrust watchdog, has already begun gathering information on Amazon’s treatment of its own-brand products.

In a statement from March, the Commission confirmed that it was collecting facts and evidence but declined to comment further when asked on Thursday.

In its compliance report published in March, Amazon emphasised that its ranking algorithms do not distinguish between its own-brand products and those offered by third-party sellers. “Our ranking models do not differentiate on whether the product is sold by Amazon Retail or a seller, or whether it is an Amazon product or a third-party product,” the report stated.

Amazon is not the only tech giant under scrutiny. Other companies, including Apple, Google, and Meta Platforms, are also facing investigations under the DMA. Ribera will be responsible for deciding the outcomes of these cases, taking over from Vestager, according to sources.

Follow us on: