As Reuters writes, the Federal Cartel Office (Bundeskartellamt) in Germany ruled that Amazon can no longer use mechanisms to influence the setting of prices for goods sold by independent traders in his online store. According to the office, this limited the freedom of competition and put small sellers at a disadvantage compared to Amazon itself.
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Germany bans price controls by Amazon
This is the first decision of this kind against a company operating on such a large scale – and at the same time the first in which the regulator also demands financial compensation for previous practices, writes Reuters.
Thanks to the new powers granted to the German regulator after the 2023 reforms, the Kartellamt demanded from Amazon a refund of approximately EUR 59 million. The Office believes that Amazon achieved a market advantage by imposing or limiting prices, which in turn brought financial benefits to the company at the expense of the competition.
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German office: Amazon influenced competition prices
Andreas Mundt, head of the Federal Cartel Office, emphasized that Amazon also plays a role in the market sales platform and retailerwhich puts him in a conflict of interest position.
“Amazon competes directly with other sellers on its platform,” he explained.
As Reuters writes, the regulator therefore concluded that the use of mechanisms limiting price imposition, even in the form of price limits, is permissible only in exceptional circumstances – for example, when the aim is to counteract rapid price increases (so-called price gouging). Mundt said that in its current form, Amazon exceeded the limits of permitted competition.
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Amazon is not giving up
Rocco Braeuniger, a representative of Amazon's German subsidiary, immediately indicated that the company intended to appeal against the office's decision.
“If Amazon is now merely required to 'promote uncompetitive or even abusive in-store prices, it will lead to a deterioration in the shopping experience.' – he said, quoted by Reuters.
The representative added that the office's decision is final “unprecedented action of the regulator”and according to Amazon contrary to the principles of EU competition law.
Amazon has 30 days to appeal to the Federal Court of Justice in Germany.
Supervision of the e-commerce market. This is another case
As Reuters reminds, the decision of the German office is similar to other actions of this type by other regulators in Europe – for example in the case of the Temu platform, which is also subject to proceedings regarding the impact on sellers' prices. Regulators are increasingly looking at the practices of e-commerce giants and their impact on competition and the retail market.
