Amazon is currently under two antitrust investigations for using their influence and data to position themselves above the competition. Already in 2020, the European Commission accused Amazon of using his height and information in his possession to obtain a unfair advantage on their rivals. Now the company reaffirms its behavior and promises that it will fix it, thus avoiding costly fines.
Amazon has been the target of the EU for a few years, because it has promoted a business model from which it benefits. Specifically, using its “bigdatamade up of data from Amazon sellers. This let the company know that products they have one Greatest demand where are more profitable. This prompted the antitrust investigation against Amazon, alleging that it also made use of sensitive information.
Amazon backs down, says it won’t use seller data in its favor
Seeing what could fall in economic terms and even worse, in terms of reputation, the giant Amazon backs down and decides not to continue on this path. The American online sales giant thus refrains from using the Data of the sellers for your private label products or your company detail. Indeed, he assures that will treat sellers fairly when ranking their offers in ranking of the “Buy the boxfrom Amazon, where he says the majority of sales come from.
In addition, according to 2019 data, the 82% of sales from Amazon took place in the Buy Box, especially when shopping with mobile devices. As we can see, this is the term used to refer to the classic icon and button of the Basket from Amazon. Apart from that, to evade antitrust lawsuits, Amazon claims that it will create a second buy box.
This will show a product of another brand rival, if it differs significantly price and delivery time. In addition, sellers and offers of AmazonPrime They will be chosen according to non-discriminatory criteria. Additionally, sellers can choose your preferred transport company instead of Amazon logistics services. That said, you can comment on the changes until September 9 before the EU decides whether to accept or ask for more.
If Amazon Is Convicted of Antitrust, It Will Cost You 10% of Your Global Revenue
Amazon has a lot to lose, because if it breaks European regulations, the fine involves up to 10% of its sales worldwide. Therefore, Amazon hopes that the modifications explained above can avoid this result. However, it has been shown critical in the face of the new regulations imposed by the Digital Markets Act. This will come into force next year and aims to prevent anti-competitive or anti-trust practices.
In this way, it will assign the largest and most capable platforms to dominate the market the role of “guardians“. To receive it, you will need to generate 7.5 billion euros/year in the EU in recent years three yearscount on 45 million monthly users Yes 10,000 business users. These conditions are met Amazon and being considered an access tutor, the European Commission will allocate several obligations and limits.
“Aunque nos preocupa mucho que la Ley de Mercados Digitales afecte unjustamente a Amazon ya otras estadounidenses empresas, y no estamos de acuerdo con varias conclusions de la Comisión Europea, hemos colaborado de forma constructiva con la Comisión para responder a sus preocupaciones”, declared the company.
“The concessions would preserve our ability to serve European customers and the most 185,000 small and medium enterprises European companies that sell in our stores”.