Britain’s antitrust authority is looking into Amazon.com Inc on suspicion of undermining competition by giving its own sellers an unfair edge in its marketplace over third parties, adding to global regulatory scrutiny of the US internet behemoth.
The Competition and Markets Authority (CMA) of the United Kingdom announced on Tuesday that it has launched an inquiry into whether Amazon’s actions affecting sellers on its domestic marketplace are anti-competitive and result in a worse deal for customers.
“It’s right that we carefully investigate whether Amazon is using third-party data to give an unfair boost to its own retail business and whether it favours sellers who use its logistics and delivery services – both of which could weaken competition,” Sarah Cardell, general counsel at the CMA, said in a statement.
According to the CMA, millions of customers in the UK use Amazon’s services for fast delivery.
According to an Amazon spokeswoman, the business would collaborate fully with the CMA during its inquiry, and revenues from the company’s selling partners have continued to increase faster than Amazon’s retail sales.
The investigation follows a current European Commission (EC) probe into similar concerns, although it does not address issues impacting Britain following Brexit, according to the CMA, which added that it intends to work with the EC.
In November 2020, EU antitrust regulators sued Amazon for distorting competition in online retail markets and launched a second inquiry into the company’s business practises.
According to the Financial Times, as part of a deal with the EU, Amazon will share more data with competitors and give shoppers a larger range of products.
According to the Financial Times, Amazon will provide third-party vendors on its marketplace access to information that could help them sell more things online.
The British regulator stated that its probe would focus on three main areas, including how the Seattle-based business gathers and utilises third-party seller data and how it determines who is eligible to sell under the Prime label.
Separately, Germany’s antitrust authority subjected the e-commerce behemoth to harsher supervisory regulations on Wednesday, claiming that Amazon’s position is of exceptional, cross-market relevance for competition.
(Adapted from IrishNews.com)