SHARE
COPY LINK

COMPETITION

Amazon under investigation by Italy’s competition watchdog

Italy's competition authority said on Tuesday it had opened an investigation into Amazon for possible abuse of its dominant position in online commerce and logistics.

Amazon under investigation by Italy's competition watchdog
Did Amazon unfairly profit from its market dominance in Italy? Photo: Philippe Huguen/AFP

The authority said it suspected that the retail giant had been giving preferential exposure to third-party vendors on its platform only if they subscribed to Amazon's logistics service.

READ ALSO: Amazon promises to bring 1,700 new jobs to Italy

“These practices would have allowed Amazon to profit unfairly from its dominant position” in online commerce platforms “in order to significantly curtail competition” on storage and dispatch markets, said the Italian competition authority, Antitrust. These practices would have in the end harmed consumers, it added.

The investigation is likely to last a year, said Antitrust. The authority's agents inspected various Amazon sites on Tuesday, accompanied by members of the financial crime unit.

The Italian case follows probes by authorities in Japan, France, Austria and the EU Commission into practices by Amazon and other tech giants like Google, Apple and Facebook.

In June 2017, the EU Commission hit Google with a fine of €2.42 billion for abuse of its dominant market position, the first such sanction for the company in Europe. 

READ ALSO: 

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

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.

SHOW COMMENTS