UK CMA Receives Concessions from Amazon as Investigation into Marketplace Continues

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on Wednesday provided commitments to the U.K. Competition and Markets Authority following concerns raised by Britain’s competition watchdog regarding the U.S. e-commerce giant’s treatment of third-party sellers.

The CMA stated that if accepted, Amazon’s offered remedies would effectively address the competition concerns identified in the investigation that commenced over a year ago.

In July 2022, the CMA initiated an investigation into Amazon, accusing the company of leveraging its dominant market position to provide unfair advantages to its own retail business and sellers using its services, as compared to third-party merchants on its marketplace.

The CMA confirmed that Amazon has made several commitments to address the concerns raised.

One of these commitments aims to prevent Amazon from using marketplace data of competing sellers to gain an unfair advantage. The CMA expressed concerns that Amazon’s access to “commercially sensitive data” relating to third-party sellers could provide the e-commerce giant with an edge in product selection and pricing decisions.

Amazon’s commitments also include ensuring equal treatment for all product offers when determining which ones will be featured in the “Buy Box” on its product pages, where customers can make one-click purchases.

The CMA expressed concerns that third-party sellers’ products were less likely to appear in the “Buy Box” than Amazon’s own products.

According to the CMA, Amazon offered to allow third-party sellers to negotiate rates directly with providers of Amazon’s Prime delivery service.

As part of the proposals to the CMA, Amazon will be required to appoint an independent trustee to monitor the company’s compliance with the commitments. The CMA will have a say in this appointment process.

“Amazon’s commitments to the CMA will ensure fair competition between third-party sellers on Amazon Marketplace and Amazon’s own retail business, ultimately benefiting customers in the UK,” stated Ann Pope, senior director for enforcement at the CMA, in a press release. “We are currently seeking input on these commitments, which we believe will address our concerns at this stage.”

An Amazon spokesperson stated that while the company disagrees with the CMA’s initial concerns, it has actively engaged with the regulator to address the raised issues.

European Union regulators have also been scrutinizing Amazon’s marketplace practices since 2019. In December, Amazon offered similar commitments to the European Commission to address its concerns.

Meanwhile, scrutiny of Amazon continues to intensify in the U.S. On Tuesday, Politico reported that the Federal Trade Commission is finalizing a significant antitrust lawsuit against Amazon across various aspects of its business.