Amazon seems to be facing dark times ahead as the European Union announces a major anti-trust investigation against the e-commerce website. Margrethe Vestager, the competition manager for the European Union, is all set to launch a formal investigation into Amazon’s data usage and determine whether the company’s usage of merchant data is in line with the EU competition rules.
The reports of EU circling out Amazon and launching an investigation against them first came up on Tuesday. However, an official announcement was made only on Wednesday, when the details of the investigation were also revealed. If found guilty, Amazon might face a charge of around USD 23 billion. What made the EU suspicious about Amazon was the fact that Amazon served as the same platform for both merchants as well as sellers. Margrethe Vestager, while announcing the investigation, stated that she’ll be keeping an eye out for Amazon’s dual role throughout the investigation. The primary concern though is that Amazon has become so dominant due to its dual role that there is almost no chance left for others to compete with it. Amazon, through a mail sent to Business Insider, stated that the company will cooperate entirely with the European Union throughout the investigation.
Talking of probes against Amazon, the e-commerce company has just settled an anti-trust probe against it from Germany. The company struck a deal with both Austria and Germany to get rid of all the anti-trust probes concerning how Amazon handles its merchants. The deal will ensure there are changes made from Amazon in its worldwide business services agreement next month to address the number of complaints received from sellers across the globe, affirmed the German Federal Cartel Office. However, Amazon’s rule concerning with returns and reimbursements will remain as it is for all the customers all over the world.