Amazon’s use of data is also under scrutiny from the UK’s CMA
(Picture: AFP via Getty Images)Amazon is back in the sights of the UK competition authorities over concerns that it could be giving itself and sellers using its own services and advantage compared with the third parties available on its Marketplace platform.
A new formal investigation at the Competition and Markets Authority (CMA) will look into whether or not Amazon “has a dominant position in the UK and whether it is abusing that position and distorting competition”.
Amazon said it will “work closely with the CMA during their investigation” and that sales from its partners continue to grow faster than Amazon’s retail sales.”
The CMA said the probe will include three main areas, including how “Amazon collects and uses third-party seller data, including whether this gives Amazon an unfair advantage in relation to business decisions made by its retail arm.” It will also look at how the US giant “ sets criteria for allocation of suppliers to be the preferred/first choice in the ‘Buy Box’”, the prominantly displayed one-click purchasing tool on the site, as well as the criteria for selling under its Prime label, which often includes next-day delivery.
“It’s right that we carefully investigate whether Amazon is using third-party data to give an unfair boost to its own retail business and whether it favours sellers who use its logistics and delivery services – both of which could weaken competition,” said Sarah Cardell, general counsel at the CMA.
The investigation follows a current European Commission equivalent, which does not cover ongoing issues affecting the UK now that it has left the European Union.
Amazon also said that more than 50% of all products sold via its site are from small businesses, adding: “ There are now more than 65,000 small and medium-sized business in the UK that sell on Amazon, supporting more than 175,000 jobs across the country.”
