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Anger as amazon.com stops most deliveries from US to Switzerland

Purchases made on the US-based amazon.com website will no longer be delivered to Switzerland as of December 26th with only digital products like eBooks and apps escaping the cut, according to Swiss media reports.

Anger as amazon.com stops most deliveries from US to Switzerland
Amazon workers in San Fernando de Henares, near Madrid in 2016. Photo: AFP

The same will go for other non-EU amazon sites when it comes to delivering to Switzerland, according to Swiss daily the Tages Anzeiger and confirmed to The Local by a spokesperson for the company.

The online giant has made the decision in the wake of changes to Switzerland’s value-added tax (VAT) due to come in next year.

These will see online distributors with a turnover of at least 100,000 Swiss francs (€88,000) from small consignments taxed in the same way as domestic distributors.

The company is now recommending Swiss shoppers use other Amazon sites in Europe like Amazon.de, Amazon.fr or Amazon.co.uk.

Anyone with a gift voucher or credit for the amazon.com website (or other non-EU amazon sites) should use these before December 26th as they cannot be redeemed using EU amazon sites, the retailer informed customers in an email.

One reader of The Local told us he had been informed by Amazon customer services that orders placed on amazon.com before December 26th would be delivered. The Local received confirmation by email from Amazon that this would be the case.

E-commerce expert Thomas Lang told the Tages Anzeiger that the impact of the move would be limited as deliveries from amazon.com to Switzerland only totalled an estimated 65 million francs compared to an estimated 575 million Swiss francs in deliveries from amazon.de, for example.

Lang said that this was because amazon.com did not deliver many products from the US.

But other users have pointed out that there are products that are not available on amazon.de or cannot be shipped to Switzerland. Those products include hard-to-find books, records or CDs.

Meanwhile, Swiss business review Bilanz pointed out that Amazon has had more than 12 months to find a solution for changes to the Swiss VAT system but has either been unable or unwilling to do so. It said the company's latest move was further evidence Switzerland was a “sideshow” for the online giant.

A spokesperson for the Swiss tax authorities said that by stopping deliveries to the Swiss market from the US, Amazon would not be dodging VAT as this would be payable when deliveries were made to Switzerland from its EU sites.

AMAZON

Germany opens ‘anti-competition’ probe into Amazon with tougher law

Germany's competition authority said Tuesday it had opened an inquiry into online retail giant Amazon over potential "anti-competitive practices", using a new law giving regulators more power to rein in big tech companies.

Germany opens 'anti-competition' probe into Amazon with tougher law
An Amazon warehouse in Brandenburg. Photo: picture alliance/dpa/dpa-Zentralbild | Patrick Pleul

Federal Cartel Office head Andreas Mundt said his office is examining whether Amazon has “an almost unchallengeable position of economic power” and whether it “operates across various markets”.

If so, it would be deemed of “paramount significance”, said Mundt, adding that the regulator could “take early action against and prohibit possible anti-competitive practices by Amazon”.

“This could apply to Amazon with its online marketplaces and many other, above all digital offers,” he added.

Under the amendment to Germany’s competition law passed in January, the watchdog said it now has more power to “intervene earlier and more effectively” against big tech companies, rather than simply punishing them for abuses of their dominant market position.

READ ALSO: ‘I want to know origin of my grapes’: Amazon loses fruit and veg ruling in German court

The German reform coincided with new EU draft legislation unveiled in December aimed at curbing the power of the internet behemoths that could shake up the way Silicon Valley can operate in the 27-nation bloc.

The push to tighten legislation comes as big tech companies are facing increasing scrutiny around the globe, including in the United States, where Google and Facebook are facing antitrust suits.

The Amazon probe is only the second time that Germany’s Federal Cartel Office has made use of its new powers, after first employing them to widen the scope of an investigation into Facebook over its integration of virtual reality headsets.

The watchdog already has two traditional abuse control proceedings open against Amazon.

One involves the company’s use of algorithms to influence the pricing of third-party sellers on Amazon Marketplace, while another is probing the extent to which Amazon and major producers such as Apple exclude third parties from
selling brand products.

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