Amazon abused position to obtain third-party sellers’ data, says EC

The European Commission (EC) has said that Amazon abuses its dominant position as both a marketplace and retailer on the same platform by using sellers’ data to boost its own-label products.

The EC has also launched a probe into whether Amazon gives preferential treatment to sellers that use its logistics services.

The EU regulator has been investigating Amazon since July last year after receiving complaints from traders.

It has looked into how Amazon collects data on its competitors on the platform that sell anything from electronics to toys, revealing that Amazon uses the sensitive data on what is popular in order to target its own goods.

Amazon has rebuffed the accusation, saying no company “cared more” for small businesses.

The online titan faces a fine of up to 10% of its global turnover if found guilty of breaching competition law – around $19bn (£15bn).

EU competition commissioner Margrethe Vestager said in a statement that it was vital regulators ensure platforms with dual power like Amazon do not “distort competition”.

She added: “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.

“With ecommerce booming, and Amazon being the leading ecommerce platform, a fair and undistorted access to consumers online is important for all sellers.”

The coronavirus pandemic has driven huge growth for Amazon as shoppers turned online, with sales up 37% year on year to $96bn (£74bn) in the third quarter to September 30, while its profits tripled to $6.3bn (£4.9bn).