In An Effort To Avoid EU Fines, Amazon Agrees To A Fairer Seller Program
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- July 15, 2022
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The European Commission accused Amazon of abusing the websites of the market operator and retailer. The European Commission went on to claim that Amazon misleads small sellers by using sales data collected from them. To provide a solution to this and negotiate peace, the European Commission ordered that Amazon “refrain from using collected non-public data relating to independent small service providers in their marketplaces.
Amazon has long been on the European Commission’s radar, using the information on its platform to replicate popular and sought-after products like PeakDesign bags and Allbirds shoes. However, the research looked at more options that Amazon could explore using this data.
In addition to learning about the data, Amazon makes plans on how to sell products to first-list subscribers and also uses a “Buy Box” feature that allows customers to add an item to their cart or buy it right away. With Buy Box you can only single out one supplier, so you don’t need to think after buying real estate. EU investigators claimed that Amazon was not only unbiased and favored its products, but they also found it difficult to bring a case against the company. In an effort to be non-preferential, Amazon “is committed to applying equal treatment to all its sellers when rating their offers for the purpose of selecting a Buy Box winner and adding a second Buy Box for products that have a difference in price and/or delivery.”
Amazon is also willing to allow Third Party Providers to offer Prime delivery times without having to use its Fulfillment Service and agrees not to use information about Third Party Providers obtained through Prime. Needless to say, Amazon has agreed not to use the private data it collects from sellers to compete with them.
These representations constitute a market test that must be completed before Amazon makes any changes. The European Commission is asking Amazon’s competitors to assess the company’s commitments and provide feedback by September 9. There is a deal imminent though necessary adjustments can or can be made to the deal.
This agreement allows both Amazon and the European Union to make certain claims due to the success of the investigation. Amazon can avoid a multi-billion dollar fine, while the commission can make tangible changes to the company’s platform that will impact the online retail world. This deal also waives the inevitable lawsuits that will lead to a major scandal in the tech world.
While the announced deal is Amazon’s response to a year-long antitrust investigation, it also puts in perspective and looks to the European Union’s Digital Markets Act (DMA), which is expected to come into effect in 2024. This law aims to capitalize on the field digital. It also includes requirements for companies like Amazon to share more data with customers.
According to a TechCrunch report, Amazon said it had “serious concerns” about DMA and strongly opposes the EU’s conclusions in this case, but it also said it had reached out to the Commission to discuss its concerns and maintain its ability to serve. European clients.
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