EU files antitrust charges against Amazon over its dual role as a marketplace for third-party vendors and a competitor selling its own goods

Vestager says group uses non-public data it gathers on sales on its website to inform its own-label products — The EU has hit Amazon …

Financial Times 2020-11-10 Javier Espinoza

Discussion

@vestager Margrethe Vestager on x
We reached the preliminary conclusion that @amazon illegally has abused its dominant position as a marketplace service provider in DE & FR. @amazon may have used sensitive data big scale to compete against smaller retailers. Now for @amazon to respond. @EU_Competition
@eu_commission European Commission on x
Data on the activity of third party sellers should not be used to the benefit of Amazon when it acts as a competitor. We reached the preliminary conclusion that Amazon has illegally abused its dominant position in France and Germany: https://europa.eu/!BR88RW #EUAntitrust https:/…
@toddbishop @toddbishop on x
@amazon “... The Commission takes issue with Amazon systematically relying on non-public business data of independent sellers who sell on its marketplace, to the benefit of Amazon's own retail business, which directly competes with those third party sellers.” https://ec.europa.eu…
@conlon_chris Chris Conlon on x
I am yet to see a serious economic analysis which suggests that using data to decide which markets to enter represents an anticompetitive harm. That people are worried about anticompetitive ENTRY is a sign IO economists have failed at explaining the very basics to lawyers. https:…
@caffar3cristina Cristina Caffarra on x
Interesting timing: with expectations that the new US administration will be tech-friendly (except for FB), and the DSA data /conduct regulation juggernaut underway, @EU_Competition signalling hello we're still the enforcement pioneers over here... https://twitter.com/...
@susanlitv Susan Li on x
#Amazon faces anti competitive charges in the EU 👇 The EU commission can force $amzn to change its business practices & fine it as much as 10% of its annual global revenue—or up to $28 billion, based on 2019 numbers #tech #Antitrust #TechNews https://twitter.com/...
@kv61416 Krystian on x
@Techmeme @JavierespFT Is this really that much different from super markets and other normally brick n mortar stores having their own store brands to compete with the vendors that sell in their stores? They also use their internal data for those store brands
@samuelhorti Samuel Horti on x
EU hits Amazon with antitrust complaint that could cost the tech giant $28 billion. EU takes issue with Amazon using data from third-party sellers to inform own retail strategies, acting as both operator of — and a competitor within — that marketplace. https://www.businessinsider…
@benedictevans Benedict Evans on x
Step 1: define the market as ‘people who sell on Amazon’ Step 2: argue whether Amazon has signifiant power in the market for ‘people who sell on Amazon’ Step 3... https://www.ft.com/...
@carnage4life Dare Obasanjo on x
Amazon has 25% of e-commerce market share in Europe which is about 12% of total retail. EU is after them for using sales data to influence what store brands to create just like grocery stores do. This isn't a monopoly but they do have a near insurmountable competitive advantage h…
@carnage4life Dare Obasanjo on x
Just like the DOJ going after Google for paying Apple for search defaults on iOS, this seems more like going after companies for being so successful that barriers to entry for competition competition are too high versus acting maliciously to abuse their power. This is a new wave.
@benedictevans Benedict Evans on x
Here's the EU complaint about Amazon marketplace. A small observation on regulatory culture - note how there's none of the childish rhetoric of the latest DoJ/Google case. https://ec.europa.eu/...
@paultang Paul Tang on x
Monopolists no longer raise prices, they steal data. Good that @vestager fights this abuse and launches antitrust investigation into Amazon. https://www.ft.com/...
@harisalisic Haris Alisic on x
It's clear that judiciary in EU moves much faster than in the US. Unlike US, things go to court, proceedings and evidence are public. Many times in the US, there is a secretive settlement. EU hits Amazon with antitrust charges over merchant data https://www.ft.com/...
@capital_apollo @capital_apollo on x
FT: EU to hit Amazon with antitrust charges today at midday in Brussels in a long awaited move that will sediment Margrethe Vestager's tough stance on Big Tech https://www.ft.com/...

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EU files antitrust charges against Amazon over its dual role as a marketplace for third-party vendors and a competitor selling its own goods

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