Amazon Faces Potential EU Investigation Under New Digital Markets Act Regulations

Amazon is poised to face an EU investigation next year regarding potential favoritism towards its own brand products on its online marketplace, according to sources familiar with the matter. This inquiry comes as European antitrust regulators intensify their scrutiny under the Digital Markets Act (DMA), which aims to curb the dominance of major tech companies.

The investigation could lead to significant repercussions for Amazon, including fines of up to 10% of its global annual turnover if found guilty of violating the DMA. This legislation, which came into effect last year, prohibits companies like Amazon from giving preferential treatment to their products over those of third-party sellers on their platforms. The decision on whether to proceed with the investigation will be made by the incoming EU antitrust chief, Teresa Ribera, who will assume her role next month, replacing Margrethe Vestager.

Amazon has stated that it is compliant with the DMA and has been cooperative with the European Commission regarding its obligations under the new regulations. In a compliance report released in March, Amazon asserted that its ranking algorithms do not differentiate based on whether a product is sold by Amazon itself or by third-party sellers.

The European Commission has been actively gathering information on how Amazon manages its product listings and has not commented on the investigation as of now. This scrutiny follows similar investigations into other tech giants, including Apple, Alphabet’s Google, and Meta Platforms, all of which are currently under examination for potential violations of the DMA.

This developing situation highlights the ongoing tension between regulatory bodies in Europe and large technology firms as they navigate compliance with new rules designed to promote fair competition in digital markets.

For further details, you can refer to the original article from Reuters here.

Sources:
[1] https://www.euronews.com/next/2024/11/21/lawmakers-seek-amazon-visit-and-hearing-before-restoring-lobby-access-to-parliament
[2] https://www.xm.com/au/research/markets/allNews/reuters/amazon-likely-to-face-investigation-under-eu-tech-rules-next-year-sources-say-53973612
[3] https://economictimes.com/tech/technology/amazon-likely-to-face-investigation-under-eu-tech-rules-next-year/articleshow/115536815.cms
[4] https://money.usnews.com/investing/news/articles/2024-11-21/exclusive-amazon-likely-to-face-investigation-under-eu-tech-rules-next-year-sources-say
[5] https://ca.finance.yahoo.com/news/exclusive-amazon-likely-face-investigation-163000529.html
[6] https://www.reuters.com/technology/amazon-likely-face-investigation-under-eu-tech-rules-next-year-sources-say-2024-11-21/
[7] https://www.theverge.com/2024/11/21/24302484/amazon-may-face-an-eu-antitrust-investigation
[8] https://www.xm.com/au/research/markets/allNews/reuters/amazon-falls-after-report-co-likely-to-face-investigation-under-eu-tech-rules-next-year-53973634