Tech

Amazon avoids heavy fines, reaches an agreement with the European Union on the use of sellers’ data


Amazon reached an agreement with the European Union on Tuesday in two antitrust investigations after addressing concerns about sellers’ data use, in a move that would save it from fines. up to 10% of global sales.

In the first case, Amazon faces charges of using its size, power and data to promote its own products to gain an unfair advantage over rival merchants who also use its platform.

The company has agreed not to use seller data for its own competitive retail business and its private label products.

The second case is about treating sellers equally when ranking their offers for the “buy box” on the site that generates the majority of their sales.

Amazon has agreed to set up a prominently displayed second purchase box for a competitor product if that product is significantly different in price and shipping from the product in the first box.

“The Commission finds that Amazon’s ultimate commitments will ensure that Amazon does not use marketplace seller data for its own retail operations and that Amazon grants non-discriminatory access to Buy. Box and Prime,” said the European Commission, which oversees fair competition in the 27-nation EU.

“We are pleased that we have addressed the European Commission’s concerns and resolved these,” an Amazon spokesperson said.

The commission said Amazon’s final commitments will be valid for seven years in relation to Prime and the display of a second competitive Buy Box offer and five years for the remainder of the pledge.

“Under the oversight of the Commission, an independent trustee will be responsible for overseeing implementation and compliance with the commitments,” it said.

The commission said it could fine Amazon up to 10% of its total annual revenue if the company breaches its commitments.

© Thomson Reuters 2022


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