Web store Amazon is prepared to no more extended use data from sellers who try to sell their products via the well-known platform. The American online giant hopes to avoid a fine from the European Commission.
The Commission opened an investigation in July 2019 into using data from independent merchants on Amazon. The company has now pledged to “dispense with the use of non-public data related to or derived from the activities of independent sellers for its retail outlets that compete with those sellers,” the Commission said in a statement.
Amazon not only sells products directly on its website but also makes its platform available to third-party merchants. For example, according to the Commission, Amazon has access to data from those merchants, which the company can use to better compete with those providers. This concerns, for example, sales figures, consumer behavior, and income.
In addition, Amazon is also making concessions in another investigation opened by the Commission in 2020. For example, the multinational promises equal treatment for all sellers on the so-called Buy Box. Amazon was accused of giving preferential treatment to merchants using Amazon’s delivery service. Sellers to Amazon Prime members will also be able to choose their logistics and delivery services from now on. In a statement, Amazon has indicated that the company still disagrees substantively with several of the Commission’s conclusions.
However, Amazon said it chose to work constructively with the European competition watchdog to resolve concerns and “maintain our capacity to serve European customers and the more than 185,000 SMEs selling through our stores,” the statement said.
The Commission is now giving other parties until September 9 to respond to Amazon’s proposals, which would be valid for five years. The commitments could become legally binding on Amazon if they effectively address competition problems. If the company still violates these commitments, there is a risk of another fine that can amount to 10 percent of the annual turnover.
