Amazon and the European Union reach an agreement to end antitrust investigations

Amazon has agreed to give merchants operating in the European Union more access to valuable real estate on its website, the European Commission said Tuesday, in a deal that ended antitrust investigations by regulators who said the company used its size and power to stifle competition in the country. Bloc.

the settlement He helps Amazon avoid what could have been a multibillion-dollar fine, while giving the European Commission, the European Union’s executive branch, a victory in delivering long-awaited changes to the world’s dominant online shopping platform. Under the agreement, The Company will also be prohibited from using non-public information it collects about independent merchants to inform Amazon’s product choices.

The deal is an attempt to put more barriers between Amazon’s roles as a digital storefront that many merchants rely on to reach customers and as a maker of products that often compete with third-party sellers. Critics say the dual roles have created conflicts of interest, allowing Amazon to favor its products and services over smaller competitors who have few other ways to reach customers online.

“Today’s decision sets new rules for how Amazon conducts its business in Europe,” said Margrethe Vestager, executive vice president of the European Commission that oversees digital policy and antitrust enforcement. “Amazon can no longer abuse its dual role and will have to change many business practices.”

“Competing independent retailers and carriers will benefit as well as consumers,” she added.

An Amazon spokesperson said the company was “delighted to have addressed the European Commission’s concerns.”

The spokesperson said: “While we continue to disagree with many of the European Commission’s initial conclusions, we have engaged constructively to ensure we continue to serve customers across Europe and support the 225,000 European SMEs selling through our stores.”

Already seen as the world’s most active regulator of the tech industry, the European Union is now acting more aggressively. On Monday, antitrust regulators brought charges against Meta that could result in billions of dollars in fines for anticompetitive practices related to serving the market for the sale of goods. Apple and Google are also under investigation for possible antitrust violations.

Companies are also racing to comply with new EU laws aimed at the technology sector that take effect by 2024. The rules give regulators more power to crack down on what is seen as Anti-competitive business practices and forcing social media companies to monitor user-generated content more actively.

Amazon’s deal announced Tuesday closely tracks the initial deal announced in July. Under the settlement, Amazon agreed to:

• Give independent merchants equal access to the “Buy Box” – the buying area with prominent buttons in the product listing that urge customers to “Buy Now” or “Add to Cart”. Amazon said it will create a second display box if there is enough difference in price or delivery time.

• Stop using non-public data about merchants that sell on its website, including terms of sales, revenue, and inventory, that Amazon can use to make decisions about competing products to create, sell, and promote.

• Allow third-party sellers to participate in Amazon’s Prime even if they don’t use Amazon’s logistics business, if they meet certain standards for delivery and service reliability.

The settlement lasts for five years and legally applies only to Amazon’s operations in the European Union.