The CMA is investigating Amazon over concerns that practices affecting sellers on its UK Marketplace may be anti-competitive and could result in a worse deal for customers
This new investigation follows a current European Commission probe looking into similar concerns, which does not cover ongoing issues affecting the UK now that it has left the European Union.
Some of the products on Amazon’s Marketplace are supplied through its own retail business.
However, a large proportion are supplied by third-party sellers. Amazon provides services to these sellers, including those that are essential to make sales, such as matching sellers with consumers. It also offers optional services that incur additional fees, such as Amazon’s ‘Fulfilment by Amazon’ service. This handles some aspects of the sales process, including storage, packaging, and delivery.
The Competition and Markets Authority’s (CMA) investigation will consider whether Amazon has a dominant position in the UK and whether it is abusing that position and distorting competition by giving an unfair advantage to its own retail business or sellers that use its services, compared to other third-party sellers on the Amazon UK Marketplace.
The investigation will focus on 3 main areas:
Sarah Cardell, General Counsel at the CMA, said:
The CMA has not reached any conclusions at this stage as to whether or not competition law has been infringed.
The European Commission has previously opened 2 investigations covering the same areas. The CMA will seek to liaise with the European Commission as its own investigation in the UK progresses.
Alongside this case, the CMA also has an open investigation into Amazon and Google, under consumer protection laws, over concerns that they have not been doing enough to combat fake reviews on their sites. The CMA has not reached any conclusions at this stage as to whether or not consumer laws have been infringed.
More information can be found on the investigation into Amazon’s Marketplace case page.
Notes to Editors