Amazon settles with EU on partner sellers
Amazon has reached a settlement with the European Commission. The ecommerce giant says it will not use data from partner sellers for its own products. It will also add a second Buy Box. By doing this, the platform avoids a billion dollar fine.
Amazon has been under investigation by several European watchdogs, including market authorities in Germany and the United Kingdom. Only a year ago, Amazon was fined by Italian watchdog AGCM for abusing market dominance.
Partner data used for own products
Settling with the European Commission will save Amazon from a fine worth 10 percent of its global turnover. To illustrate, in 2021 Amazon made 496.822 billion dollars in revenue.
Amazon will no longer misuse partner data.
The agreement puts an end to three investigations undertaken by the European Union (EU). The first raised concerns about Amazon using data of third-party merchants to benefit its own products. The marketplace has promised not to collect this information from partners anymore.
Second Buy Box
There were also worries about Amazon favoring sellers using Fulfilment By Amazon (FBA) for the Buy Box. The box is an important driver of sales on the website. Now, Amazon promises to set up a second Buy Box for a rival product if it substantially differs in price and delivery from the first box.
The second Buy Box will offer a rival product.
Lastly, Amazon was scrutinized for not letting Amazon Prime sellers pick their own logistics and shipping service. Now, the company promised sellers can choose a fulfilment service provider themselves.
Agreements last up to 7 years
An Amazon spokesperson told Reuters: “While we continue to disagree with several of the preliminary conclusions the European Commission made, we have engaged constructively to ensure that we can continue to serve customers across Europe.”
The agreement on the second Buy Box and Prime sellers will last for seven years, the other commitments last five years. Amazon will be supervised by an independent trustee, according to the EU. If Amazon does not comply, it can still be fined 10 percent of its turnover.