Amazon, investigated in Germany for abuse of power

Amazon, investigated in Germany for abuse of power

The German Competition Authority, "Bundeskartellamt", has opened an investigation into abuse of a dominant position against Amazon to examine the business conditions and practices of the e-commerce giant with respect to companies that use the sales platform.

The president of the German Competition, Andreas Mundt, stressed the position of Amazon as the largest online sales platform in the country, while acknowledging the great dependence that many have

retailers and manufacturers to the company of Jeff Bezos to make their electronic sales. It is not surprising that, given its hegemony in the sector, it is suspected that this double role, as the largest seller and largest market, has "the potential to harm other vendors who use the platform," said Mundt.

In this sense, and "as a result of the numerous complaints we have received," the regulator pointed out that business practices and conditions that could be considered abusive include liability provisions that harm sellers, in combination with the choice of laws and clauses. on jurisdictions, rules on product reviews, termination and non-transparent blocking of sellers' accounts, as well as withholdings or delays in payment and clauses that grant rights to use the material information that a seller must provide with respect to the products offered.

In case the suspicions are confirmed, the authority for the competition would order Amazon to change those practices. The office says its investigation will "complement" an ongoing one of the Commission

European Union on the use of data from sellers by Amazon to the possible detriment of market vendors, with a focus strictly in terms of business and practices towards sellers in its German Amazon market.

In reference to the suspicions of Europe, the investigation is still in its initial phase. However, according to Margrethe Vestager, European Competition Commissioner, information is already being collected from sellers who could be affected by this Amazon malpractice, which would be to take advantage when selling their own products after obtaining commercial information from the vendors who use your page as an intermediary.

Amazon had 16,000 employees in Germany at the beginning of 2018 and announced that it would add another 2,000 more this year. The multinational company has invested 10 billion euros in the German country since 2010. Regarding the investigation, sources of the company said that it will "cooperate" with justice and the ongoing processes will be respected.


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