The European Commission wants to know if the recovery of sensitive data from sellers in the Amazon marketplace is a breach of the rules of competition.
This time, it's official. In the visor of the Margrethe Vestager competition commissioner, like all other digital giants besides, Amazon is the subject of a "thorough investigation" of the European Commission, which will look at the potentially anti-competitive practices of the firm of Jeff Bezos. Stake? Know if she benefits (or not) from her dual role of seller and marketplace.
Amazon is constantly collecting information about sellers in its marketplace
As you know, Amazon has a double hat. It sells products as a retailer on its website on the one hand, and makes independent third-party sellers its marketplace, on the other hand, allowing these sellers to use Amazon to sell directly to consumers.
If in the mind, and to magnify the feature, sellers can be satisfied with this opportunity, the practice allows Amazon to collect, continuously, data and information on the activities that take place on its platform.
At the end of its preliminary investigation, the European Commission concluded that Amazon was taking advantage of its position as an intermediary to collect sensitive data on the retailers of its marketplace, their products, but also transactions made with customers.
Amazon faces a fine of up to 10% of its revenue
By now conducting an in-depth investigation, the EU institution will examine the standard agreements between Amazon and the sellers in its marketplace to find out how the company, as a retailer, uses data collected from sellers of its marketplace affects the competition.
The Commission will also have to determine the role of the data collected in the selection of the winners of the "Buy Box", this little yellow buy button that places the product directly in your basket, a button that offers a considerable advantage to the sellers who benefit from it.
If the anticompetitive practices fears are proven, Amazon would fall under Articles 101 and 102 of the Treaty on the basis of the European Union and could be fined up to 10% of its annual turnover.
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