mazon is back in UK sights contest authorities about concerns that it could give itself and sellers using its own services and advantage compared to the third parties available on its Marketplace platform.
A new formal investigation at the Competition and Markets Authority (CMA) will investigate whether Amazon “has a dominant position in the UK and whether it is abusing that position and distorting competition”.
Amazon said it will “work closely with the CMA during their investigation” and its partners’ sales will continue to grow faster than Amazon’s retail sales.”
The CMA said the investigation will cover three main areas, including how “Amazon collects and uses data from third-party sellers, including whether it gives Amazon an unfair advantage over business decisions made by its retail arm.” It will also look at how the US giant “establishes criteria for supplier allocation as the preferred/first choice in the ‘Buy Box'”, the prominently displayed one-click purchasing tool on the site, as well as the criteria for selling under the Prime label, which often delivers next day delivery.
“It’s true that we’re carefully examining whether Amazon is using third-party data to unfairly boost its own retail business and whether it favors merchants using its logistics and delivery services — both of which could weaken competition,” said Sarah Cardell, General Counsel at the CMA.
The inquiry follows a current equivalent of the European Commission, which does not cover ongoing issues affecting the UK as it has left the European Union.
Amazon also said that over 50% of all products sold through its site come from small businesses, adding: “There are now over 65,000 small and medium-sized businesses in the UK selling on Amazon, which is good is for more than 175,000 jobs around the world. country.”