The EC will assess whether Amazon's use of sensitive data from independent retailers using its marketplace is in breach of EU competition rules.
Background: The European Commission has intensified its scrutiny of the world’s largest tech companies in recent years. Under Margrethe Vestager’s tenure as Competition Commissioner, Google was repeatedly hit by fines for a total exceeding €8bn between 2017 and 2019 for different anti-competitive practices. Apple was forced to pay about €13bn in unpaid taxes, and is now facing a probe for possible anti-competitive conduct against Spotify.
Amazon is now under the spotlight: The EC has now opened a formal antitrust investigation against Amazon. It will aim to find whether Amazon's use of sensitive data from independent retailers using its marketplace is in breach of EU competition rules. Amazon has a dual role, since it sells products to consumers as a retailer, and provides a marketplace for independent sellers. In doing the latter, it collects data about activity on its platform. A preliminary investigation led the EC to conclude Amazon may be using competitively sensitive information.
What happens now? The EC has informed Amazon, and will begin its formal investigation. There is no deadline for the completion of such investigations.
