E-commerce giant Amazon is being investigated by the German antitrust officials regarding several complaints about Amazon’s conduct with sellers on the website amazon.de. The probe has been launched to investigate whether the company is preventing fair competition; The EU is already examining how the e-commerce company is using the data gathered from online sellers.
The German Cartel Office has stated in a recent press release that an abuse proceeding is underway against the company about the same. Several complaints received have driven the Federal Cartel Office to analyze whether the company is abusing its position in the market and harming sellers active on the platform. The complaint statement has notified a list of practices that could be considered abusive, including blocking accounts of sellers without any explanation, withholding payments, and the misuse of seller data.
EU’s Separate Probe into Amazon’s Use of Seller Data
It is also stated that analysis will be done to check whether Amazon’s leadership in the online retail front is hindering other companies in the field; it will also be examined whether sellers have become too dependent on Amazon for sales. The German Federal Cartel Office said that while it will keep a close eye on the e-retailer’s impact on sellers in the country, the probe will supplement the investigation underway into the company’s use of data by the EU’s Competition Commission.
Responding to this development, a spokesperson from Amazon has said that the company will fully cooperate with the concerned authorities. It has been reassured that the company will continue to work towards empowering small- and medium-scale businesses. The company further added that tens of thousands of German companies use the platform and over 70% of them export products to consumers across the globe using it.