November 22, 2024 – Amazon may face an investigation by the European Union next year, according to a report by Reuters on November 21st, regarding whether it favors its own branded products in the e-commerce market.
Sources with direct knowledge of the matter revealed that European antitrust regulators have established a case under new rules. If Amazon is found to have violated the EU’s Digital Markets Act (DMA), it could potentially face fines up to 10% of its global annual turnover.
In the coming months, the incoming EU antitrust chief, Teresa Ribera, who is set to take office next month, replacing the outgoing Margrethe Vestager, will decide whether to proceed with the investigation, insiders said.
Amazon has responded by stating that the company complies with the provisionss of the DMA and has engaged in constructive cooperation with the European Commission regarding its plans, following the imposition of the new regulations.
It’s worth noting that the DMA, which took effect last year, prohibits Amazon and several other large technology companies from favoring their own branded products and services on their platforms. The European Commission, the EU’s antitrust enforcement agency, indicated in March of this year that it was gathering facts and information about Amazon’s handling of its own branded products on Amazon stores.
Currently, the EU is conducting investigations under the DMA against Apple, Google’s parent company Alphabet, and Meta. The outcome will be determined by Ribera, rather than Vestager, according to a knowledgeable source.
