Germany’s Anti-trust Authority Launches Investigation Against Amazon For Anti-Competitive Behaviour
Amazon has been accused of anti-competitive behaviour by German authorities, following which an an investigation has started
Germany is the second biggest market for the multinational company Amazon. Amazon has been known to sharing trading relationships with several big brands like Apple. Recently, Germany’s anti-trust authority has launched an investigation against Amazon. This investigation is in concern of Amazon’s policies in context to its third-party traders. This investigation will probe into both Amazon and Apple on anti-competitive behaviour.
The German watchdog investigation is about Amazon being accused of banning third-party traders to sell on its e-commerce platform. The federal cartel officers would be investigation that this new policy of Amazon inclines with Germany’s laws or not. Amazon has said that it is cooperating with the German authorities. It also mentioned that the company tries to protect its site from illegitimate goods. According to Amazon, this offers the protection against product piracy. Apple said that it was following the law and was looking forward to sharing facts with the German competition authority.
The most prominent example of this is Amazon’s cooperation with Apple which only Apple dealerships and Amazon can offer on the platform. Both Apple and Amazon would be probed over the ban of third party traders as these traders make 65% of the sales in the market. The new probe into Amazon’s treatment of third-party dealers comes after Germany’s competition watchdog in August launched an investigation of whether and how Amazon influences traders’ price-setting on its marketplace. In Germany, third party traders are counted as 65% of sales till March 2020. Last year, Amazon reached a deal with German authority to to overhaul its terms of service for third-party merchants. This led to a 7-month investigation by the authorities of Gerrmany.
Amazon is one of the world’s largest companies, with a high market value. Amazon has been criticised earlier by other market critics who accused the platform for hurting smaller retailers by being both a marketplace and a retailer itself, and using data from its own platform to hurt smaller businesses utilizing its platform. Amazon has 13 German logistics centers with over 13000 full time workers. Apart from these, thousands of seasonal employees also work at the logistic centers of Amazon in Germany.
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