The US online retail giant is trying to get rid of a $1 billion fine in the European bloc for abuse of power, and promises to deal more fairly with rival merchants who sell through its website. Thursday (14/7).
The US online retail giant has offered to implement a number of measures to alleviate competition concerns, including treating sellers equally when rating their offerings on its website. They will also be able to choose their own logistics and delivery company instead of Amazon Logistics.
The European Commission, the 27-nation bloc’s top antitrust official, ruled that competitors and customers have until September 9 to respond to Amazon’s proposal, before the body decides whether to accept the offer and closes its two inquiries.
A fine of up to 10% of global revenue
Amazon risks a fine of up to 10% of its global sales if it is found guilty of violating EU rules. The company said it did not agree with many of the commission’s findings, but pledged to cooperate constructively with the competition watchdog.
In 2020, the European Commission accused Amazon of using its size, power and data to boost sales of its products and gain an unfair advantage over rival merchants who sell on its online platform.
Four years ago, the CEO of the European Union launched an investigation into allegations that Amazon was using data from merchants selling products on its platform to gain an unfair advantage over them.
It has also opened a separate investigation into whether Amazon prefers its own businesses and the businesses that use its logistics and delivery system over others. The investigations are part of the bloc’s broader efforts to curb the power of big tech companies.
In early July, the UK’s antitrust watchdog opened a similar investigation into Amazon, looking into concerns that the online retailer is abusing its domain to undermine competitors.
md/v (Reuters, AP)
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