Amazon probed over its effect on rivals
The Competition Bureau has launched a probe into Amazon’s conduct to determine whether the online retailer is harming competition.
The investigation, which is seeking confidential information from Canadian businesses, will include a particular focus on “potential abuse of dominance,” the watchdog said.
“The bureau is examining whether Amazon is engaging in conduct on its Canadian marketplace, Amazon.ca, that is impacting competition to the detriment of consumers and companies that do business in Canada,” the agency said in a release Friday.
Specifically, it is reviewing whether Amazon policies impact sellers’ willingness to offer their products at a lower price on other retail channels, such as their own websites or rival online marketplaces.
The bureau is also looking into any efforts by Amazon to tilt consumers toward its own products over those offered by competing vendors, as well as any disadvantage that sellers incur by opting out of Amazon’s shipping, customer relations and advertising services.
Amazon said it is co-operating with the bureau’s probe and will continue working to support small businesses that sell products on Amazon.ca.
The investigation is ongoing and there is no conclusion of wrongdoing at this point, the bureau said.
The agency’s request for public input comes amid rising concerns of monopoly power in the tech world and questions around the use of sellers’ data to create rival products.
In July 2019, the European Commission launched a formal antitrust investigation into Amazon to examine whether its data use violates competition rules, while the U.S. Department of Justice has opened one into major online platforms including Google, Facebook and Apple.
The Competition Bureau probe, which kicked off quietly early this year, could result in a negotiated settlement or a case before the Competition Tribunal — if the investigation uncovers any contravention of Competition Act provisions.
“Remedies under these provisions are primarily behavioural, including ordering an action to be taken or prohibiting an action from being taken, but can also include administrative monetary penalties,” the bureau said in an email.
It declined to confirm whether a broader investigation of other Big Tech companies is ongoing, “as the bureau is required by law to conduct its work confidentially.”