Amazon faced European union charges for using its dominant position to gain an unfair advantage over competitors. The commission said that Amazon had used data on third-party sellers that use its marketplace to boost sales of its own-label goods.
The commission is also investigating another complaint about possible favor given to the sellers who use Amazon logistics services. In response to the charges, Amazon rejected the allegations and said that no one could do more care for small business more than what Amazon is doing.
The tech giant is now facing a potential fine as high as 10% of its global turnover if it is found guilty of breaching competition law. The investigations were started in July after several complaints were lodged from traders.
The EU’s Competition Commissioner Margrethe Vestager said that it is important that the platforms with market power did not destroy the competition. She further explained that the Data on the activity of third-party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers.
It is alleged that Amazon used sensitive data from small and medium-sized companies that use its platform and then use that information for the sales of its own-label products.
Ms. Vestager talked to the press and said that We do not take issue with the success of Amazon or its size.
Amazon refused the claims made against him and said that the company’s own-label products offered more choices to customers and it’s good for them. Amazon said that no other company has done more than what Amazon is doing to support the small businesses over the past two decades. Amazon pointed out that more than 150,000 European businesses are selling through their online marketplace.