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Germany’s antitrust watchdog flags Amazon’s pricing rules as market power abuse
Germany’s antitrust watchdog flags Amazon’s pricing rules as market power abuse
Amazon accounts for about 60 percent of Germany’s online retail revenue, according to the regulator. (Image credits: Unsplash)
Germany’s competition regulator has accused Amazon of abusing its market dominance by imposing restrictive pricing rules on third-party sellers, setting the stage for possible changes to the e-commerce giant’s practices in Europe’s largest economy, as per reports.
The Federal Cartel Office said Amazon forces sellers to keep prices within its defined limits — penalizing those who don’t comply by reducing product visibility or removing listings entirely. The regulator said this behavior could distort competition, especially since Amazon itself sells products on the same platform.
“Since Amazon competes directly with other marketplace retailers on its platform, influencing competitors' pricing, including in the form of price caps, is highly questionable,” said Andreas Mundt, head of the watchdog, reportedly said. “That is especially so when the traders concerned cannot cover their own costs.”
Amazon accounts for about 60 percent of Germany’s online retail revenue, according to the regulator. The company now has the opportunity to respond to the preliminary findings.
A spokesperson for Amazon reportedly said the company strongly disputed the allegations. “Shopping on Amazon is designed so that customers who visit our store can trust that they will find the best deal based on price, availability and speed of delivery,” the spokesperson said. “That is why they keep coming back.”
Germany’s cartel office launched its probe into Amazon’s pricing practices in November 2022.
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