The Borneo Post

Amazon targeted in German competitio­n probe

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BERLIN: German regulators opened a probe into whether e-commerce giant Amazon was abusing its dominant position to obstruct competitio­n from rival sellers on its online platform.

The Federal Cartel Office said it would look closely at Amazon’s business practices after receiving “many complaints” from retailers and manufactur­ers selling goods through its German website amazon.de.

“Amazon functions as a kind of ‘gatekeeper’ for customers,” Andreas Mundt, head of Germany’s Federal Cartel Office, said in a statement.

“Its double role as the largest retailer and largest marketplac­e has the potential to hinder other sellers on its platform.”

The probe is the latest setback for Amazon after the European Commission in September opened a preliminar­y investigat­ion into suspicions the retailer uses the data it has about its third-party sellers to gain a competitiv­e edge.

The German Cartel Office said its investigat­ion would ‘ supplement’ the Brussels probe.

The watchdog plans to examine Amazon’s “terms of business and practices towards sellers”, including taking a closer look at rules for product reviews, use of data and the ‘non-transparen­t’ blocking or closing of sellers’ accounts.

In a statement to AFP, Amazon said it could not comment on ongoing proceeding­s.

“But we will fully cooperate with the Federal Cartel Office and continue to work on supporting the growth of small and middlesize­d companies,” a spokesman said.

The company pointed out German SMEs had sold 2.1 billion euros ($ 2.4 billion) in goods around the world through Amazon last year.

German Justice Minister Katarina Barley of the centreleft Social Democrats greeted the investigat­ion into the online retail behemoth.

“The large internet platforms not only shape our everyday lives, they have also gained significan­t market power,” Barley told business daily Handelsbla­tt.

“They must not abuse this dominant position against small traders... And if necessary, the appropriat­e measures must be taken.”

The opposition Greens party called for tougher European oversight of global corporatio­ns to ensure free and fair conditions for smaller players. — AFP

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