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In response to an investigation by competition regulators, Amazon has proposed a series of measures to ensure fair treatment of third-party sellers on its UK marketplace platform.
These changes will grant vendors equal placement with Amazon’s own goods near the “buy box,” which appears on the right-hand side of a product when consumers add items to their shopping cart. It is a feature that generates the majority of purchases on the site.
The UK Competition and Markets Authority launched the investigation a year ago to determine if Amazon prioritized its own business over other sellers. Amazon’s response aims to address the concerns raised by the regulator.
“This commitment will help level the playing field for third-party sellers on Amazon Marketplace in competition against Amazon’s own retail business,” said Ann Pope, Senior Director for Enforcement at the CMA. “Ultimately, this will result in better deals for customers in the UK.”
Amazon’s actions in the UK mirror similar measures accepted by EU antitrust regulators for the Amazon marketplace in Europe in December.
The CMA, currently consulting on the proposals until September, has expressed its preliminary view that Amazon’s offer adequately addresses its competition concerns.
In addition, Amazon has pledged not to use competitor sellers’ marketplace data to gain an unfair advantage. The proposals also include allowing third-party businesses to negotiate their rates directly with providers of Prime delivery services.
To ensure compliance, an independent trustee will be appointed, with the CMA having direct involvement in the hiring process.
If the proposed measures are accepted, Amazon will avoid a full investigation by the regulator and potential fines of up to 10% of their global turnover.
As part of the agreement, Amazon will create a second “buy box” for EU customers, displaying alternative options in a neutral manner. Sellers using the Prime membership scheme will also have the freedom to choose any logistics company and negotiate contracts directly, rather than being limited to using Amazon’s logistics services.
The Financial Times previously reported that the EU was facing challenges in gathering sufficient evidence to pursue its case against Amazon, particularly regarding how the company’s algorithms prioritize its own products over competitors. This was partially due to difficulties in understanding how Amazon’s algorithms function.
Amazon has not yet provided a comment on this matter.
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