After addressing concerns regarding its use of sellers' data, US online retail giant Amazon reached a settlement with the European Union on Tuesday in two antitrust probes. This action will spare it from a fine of up to 10% of its global turnover.
In the first instance, Amazon was accused of promoting its own products to gain an unfair advantage over competing merchants who also use its platform by utilizing its size, power, and data.
The company has agreed to refrain from using the information of sellers for its own private label goods and competing retail ventures.
The second case dealt with how sellers were treated equally when their offers were ranked for the "buy box" on the company's website, which is where the majority of its sales are made.
If a competing product has a significant price and delivery difference from the one in the first box, Amazon has agreed to set up a second prominently displayed buy box for it.
"The Commission found that Amazon's final commitments will ensure that Amazon does not use marketplace seller data for its own retail operations and that it grants non-discriminatory access to Buy Box and Prime," the European Commission, which oversees fair competition in the 27-nation EU, said.
"We are pleased that we have addressed the European Commission's concerns and resolved these matters," an Amazon spokesperson said.
According to the Commission, Amazon's final commitments will be in effect for five years for the remaining commitments and seven years for Prime and the display of the second competing Buy Box offer.
"Under supervision of the Commission, an independent trustee will be in charge of monitoring the implementation and compliance with the commitments," it said.
If Amazon were to violate the commitments, the Commission threatened to fine the company up to 10% of its total annual revenue.
(Source:www.theprint.in)
In the first instance, Amazon was accused of promoting its own products to gain an unfair advantage over competing merchants who also use its platform by utilizing its size, power, and data.
The company has agreed to refrain from using the information of sellers for its own private label goods and competing retail ventures.
The second case dealt with how sellers were treated equally when their offers were ranked for the "buy box" on the company's website, which is where the majority of its sales are made.
If a competing product has a significant price and delivery difference from the one in the first box, Amazon has agreed to set up a second prominently displayed buy box for it.
"The Commission found that Amazon's final commitments will ensure that Amazon does not use marketplace seller data for its own retail operations and that it grants non-discriminatory access to Buy Box and Prime," the European Commission, which oversees fair competition in the 27-nation EU, said.
"We are pleased that we have addressed the European Commission's concerns and resolved these matters," an Amazon spokesperson said.
According to the Commission, Amazon's final commitments will be in effect for five years for the remaining commitments and seven years for Prime and the display of the second competing Buy Box offer.
"Under supervision of the Commission, an independent trustee will be in charge of monitoring the implementation and compliance with the commitments," it said.
If Amazon were to violate the commitments, the Commission threatened to fine the company up to 10% of its total annual revenue.
(Source:www.theprint.in)
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