Amazon has offered a settlement against EU allegations that the online giant undermined competitors by misusing independent sellers’ sensitive information for the benefit of its own retail business, the EU said on Thursday.
Amazon’s offering is a big step by the US-based giant, which has for years dismissed allegations from competitors and regulators that it is unfairly using the data treasures parked on its platform to benefit its own products and services.
In its bid, the US tech giant pledged not to use non-public data such as sales performance and revenue that is “related to or derived from the activities of independent sellers on its marketplace,” the EU said in a statement.
Amazon also made an offer to end a second EU probe into whether its hugely popular Prime service is unfairly pushing shoppers to sellers using Amazon’s logistics service.
This probe also examined the Buy Box, which allows a user to quickly make a purchase by skipping the inconvenience of multiple screens and choices.
The company said it would display an alternative offer in the Buy Box feature if there is a material price or delivery difference from the first.
Amazon said that while “we…disagree with several of the European Commission’s conclusions, we have worked constructively with the Commission to address their concerns.”
This will “maintain our ability to serve European customers and the more than 185,000 European small and medium-sized businesses that sell through our stores”.
– “Win win” –
The EU said it is asking competitors for feedback on Amazon’s concessions by September 9, and if approved they would remain in place for five years under close scrutiny by Brussels.
Many of these allegations against Amazon are answered separately in the EU’s landmark Digital Markets Act (DMA), a key piece of EU legislation that is set to come into force next year.
The DMA imposes a long list of do’s and don’ts on the gatekeepers of tech giants, including how to handle the sensitive data of competitors using their platforms.
Alfonso Lamadrid, competition lawyer at Garrigues in Brussels, said the settlement offer was “a win-win” for both the Commission and Amazon.
On the one hand, it kept the commission from potentially fighting a lengthy court battle, and “at the same time, the commitments essentially anticipate what Amazon would have had to do to comply with the upcoming DMA,” he said.
Amazon had previously settled a case with the EU Commission over e-books and remains under scrutiny by national regulators in Germany and non-EU Britain.
The commission said the settlement would not apply in Italy, where Amazon paid a hefty fine and changed its business practices over similar concerns.
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