The EU is investigating Amazon

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The EU competition enforcers to go after suspected illegal transactions at Amazon. Against the U.S. online retailer an investigation had been launched, said the EU Commission. There may be penalties in the billions threaten.

In dealing with traders on its platform it could be on Amazon for illegal business practices, according to the EU Commission. Amazon as a platform for a dual function, it said. The company itself sell as a retailer of the products on its website. On the other, it is an Online marketplace, via the other traders of their Goods directly to customers could sell. This Amazon collect behavior continuously data on the products of the other providers and the customers.

Anti-Competitive Behaviour?

According to first findings, the Amazon competition, and certificates of sensitive information from the market traders, their products and the transactions to use, explained the EU anti-trust guardian. The competition authorities now wanted to pursue the question of whether and how the use of this data restricts competition. To do this, you want to check, among other things, the standard agreements between Amazon and other marketplace traders.

EU competition Commissioner Margrethe Vestager: Illegal practices in the Amazon?

“Electronic Commerce has led to competition in the retail sector a boost, and a larger selection and cheaper prices,” said the responsible EU Commissioner, Margrethe Vestager. “We need to make sure that large Online platforms undermine these benefits by engaging in anti-competitive behavior.”

For the investigation, there is no time limit. The EU should establish Commission ultimately illegal behavior, it can impose penalties in the billions. Amazon said that the company would cooperate with the investigation “fully with the European Commission”. At the same time, the group reaffirmed the goal “to help companies of all sizes and help them grow”.

New Terms And Conditions

Competition authorities in Germany reported the first success with Amazon. Under pressure from the Federal cartel office, the online giant dealers that sell to “Amazon marketplaces” your products allows, them to more rights. In turn, to extensive Changes in the terms and conditions of a so-called abuse is set procedure, as Germany’s top competition, the guardian reported.

The process was initiated in November 2018, after many traders had complained. You criticised that liability rules were to be borne by you, non-transparent redundancies and closures of accounts, as well as withheld or delayed payments.

Ausbalanciertere Regulations

The market places – the platform for Goods of third-party – are for the US group is immensely important. According to company information, 58 percent of the world’s about Amazon gross derived goods turnover from these sellers. Amazon comes to the dealers and changes the previously one-sided rules. So, for example, requirements for liability have been reformulated in the case of broken products, which to date has been to the dealer at the expense – in the future, they are balanced. It marketplaces the company is not only about “amazon.de” but all Online.

In addition, the termination was modified to be right. Previously, Amazon had had, according to the cartel office have an unrestricted right to the immediate termination and immediate blocking of accounts of the dealer causes of the U.S. group not to specify. In the future, a 30-day deadline applies in case of ordinary dismissals. In the case of extraordinary dismissals and closures Amazon needs to inform the dealer now and justify it.

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Omnipotence Amazon

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Documentary – Omnipotence Amazon

Positive for the seller of Amendments to the “court, are also” stand – wanted to draw a retailers against Amazon before the court, he had to to Luxembourg. For some medium-sized companies abroad are likely to have been a barrier. In the future can be, under certain conditions, the German courts have jurisdiction.

“Far-Reaching Improvements”

Cartel office chief Andreas Mundt was satisfied. “For that on the Amazon market places traders we have obtained with our new method is worldwide and far-reaching improvements,” he said. Amazon said: “the rights and duties deliver to our sales partners clearly, we’re making some Changes to the Amazon Services Business Solutions agreement.” The Changes to the 16. August effective.

pgr/pg (dpa, afp)