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Amazon set to face EU regulatory investigation - Internet Retailing

Nov 22, 2024 - internetretailing.com.au
Amazon is likely to face an EU investigation next year over allegations that it favours its own brand products on its online marketplace. This comes as European antitrust regulators build a case under the Digital Markets Act (DMA), which aims to control the power of Big Tech. If found guilty, Amazon could face a fine of up to 10% of its global annual turnover. The decision to proceed with the investigation will be taken by incoming EU antitrust chief Teresa Ribera.

The DMA, which came into effect last year, prohibits Amazon and six other Big Tech companies from giving preference to their products and services on their platforms. The European Commission is currently gathering information on Amazon’s treatment of its own brand products on the Amazon Store. Amazon, however, maintains that it is compliant with the DMA and that its ranking models do not differentiate between its own products and those of third parties.

Key takeaways:

  • Amazon is likely to face an EU investigation next year into whether it favours its own brand products on its online marketplace.
  • The US online retailer could face a fine of up to 10 per cent of its global annual turnover if found guilty of breaching the European Union’s Digital Markets Act (DMA).
  • The DMA, which came into effect last year, prohibits Amazon and six other Big Tech companies from giving preference to their products and services on their platforms.
  • Apple, Alphabet’s Google and Meta Platforms are currently being investigated under the DMA, with incoming EU antitrust chief Teresa Ribera set to decide on the outcomes.
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