European Union and Amazon close to a deal

This article was last updated on July 14, 2022

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On the verge of a deal between the European Union and Amazon over abuse of power cases

A deal between the European Commission and Amazon is expected to be reached in the fall, avoiding a billion-dollar penalty. It’s no secret that Brussels isn’t afraid to slap large fines on companies in the internet industry, as it has done three times previously to Google.

In what is known as a “market test,” the committee made the draught agreements available to the public today. A final deal will be signed this summer and will remain in effect for five years. Last week, the Financial Times reported that there would be no big adjustments.

Proposals from the European Commission to avert further escalation have been in the works for the past three years. A new piece of digital regulation, the Digital Markets Act, may have given Amazon the boost it needed to take flight. Germany and the United Kingdom are also conducting their own investigations.

Among other things, the committee looked into the claim that Amazon would use confidential sales data for its own profit. Customers that use Amazon as a sales channel have access to this information as well. That way, Amazon might see which goods are successful and build up a rival offering.

According to the committee, Amazon undertakes not to utilise sensitive data-such as statistics on sales, orders and inventories-for the sale of branded items or its’ private label’.

In addition, Amazon commits to treating every seller on the marketplace equally when picking a “winner” for the so-called “Add to Cart” button. Alternatives are shown underneath the seller’s listing on a product’s page. The buy button will be presented if there is enough difference in price and delivery to warrant it.

Amazon promises for the last time to change the requirements for joining the Amazon Prime loyalty program.This includes, for example, the ability to select a transportation firm.

During the summer months, the committee solicits input on the plan. Complainants have until September 9th to reply in the marketplace.

According to a statement from Amazon, the corporation disagrees with several of the committee’s findings and has engaged in “productive” discussions. Aside from that, the company says it has “serious concerns” about the Digital Markets Act’s coming into effect.