EU to Investigate Amazon Over Potential Digital Markets Act Violations
Brussels, Nov 21 (Reuters) – Amazon (AMZN.O) could face an EU investigation next year focusing on whether the company gives preference to its own-brand products on its online marketplace. This potential probe is part of European antitrust regulators’ efforts to enforce the Digital Markets Act (DMA), according to individuals familiar with the matter.
Under the DMA, if found guilty, the U.S. online retailer could face a fine of up to 10% of its global annual turnover. The DMA, which came into effect last year, aims to curb the power of major tech companies.
The decision and timing of the investigation will be made by the incoming EU antitrust chief, Teresa Ribera, in the coming months. Ribera, from Spain, will take over from the outgoing Margrethe Vestager next month.
Amazon has stated that it complies with the DMA and has been constructively engaging with the European Commission regarding its compliance plans. The company’s services have been designated as important gateways between businesses and consumers, making them subject to the new rules.
Following the Reuters report, Amazon shares experienced a drop, falling as much as 3% to $196.91.
The DMA prohibits Amazon and six other major tech companies from prioritizing their own products and services on their platforms, among other restrictions.
In March, the European Commission, which acts as the EU’s antitrust enforcer, announced that it was gathering information on Amazon’s treatment of its own-brand products on the Amazon Store. The Commission declined to comment on Thursday.
In its March compliance report, Amazon stated that its ranking models do not distinguish between products sold by Amazon Retail, third-party sellers, or whether they are Amazon products or third-party products.
Apple (AAPL.O), Alphabet’s (GOOGL.O) Google, and Meta Platforms (META.O) are also under investigation related to the DMA. Ribera will ultimately decide on the outcomes of these investigations, not Vestager, according to one of the sources.
Reporting by Foo Yun Chee; Editing by Susan Fenton
