The European Commission is reportedly investigating whether Amazon prioritizes own-brand products in its online marketplace.
Amazon may expect to face an EU investigation next year around violating the Digital Markets Act (DMA), according to sources to Reuters. EU regulators want to check whether the online retailer gives preference to its own branded products on its online marketplace. In doing so, Amazon risks a fine of 10 percent of its global annual sales. Since the news was shared on Reuters, Amazon’s shares already fell three percent.
Own brand products
The Digital Markets Act (DMA) has been in place since last year to keep the big tech giants in the reins. EU regulators are keeping an eye on it, and currently have Amazon in their sights. The American online retailer allegedly prioritizes its own branded products on its online marketplace. In doing so, the tech giant is undermining competitors, in violation of the DMA.
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Amazon could risk a fine of 10 percent of its global annual sales. Whether or not an investigation will begin will be decided in the coming months by new EU antitrust chief Teresa Ribera, who will replace outgoing Margrethe Vestager, according to sources to Reuters.
Since the initial reports surrounding the DMA investigation, Amazon’s shares fell as much as three percent to $196.91.