Amazon gets uk antitrust scrutiny data6/19/2023 Those firms will be subject to legally enforceable rules and obligations to ensure that they cannot abuse their dominant positions. The DMU will designate those powerful digital firms, such as Amazon, with "Strategic Market Status". Similarly, the United Kingdom has set up the Digital Markets Unit (DMU). Prohibited behaviours include self-preferencing, in treating products offered by the gatekeeper more favourably than similar products offered by third parties on the gatekeeper's platform. Those designated as gatekeepers, which will include Amazon, will be subject to rules that set out obligations and prohibited behaviours. This is followed by a six-month period before the rules begin to apply (on ). Much of this scrutiny is designed to inform new regulation of digital market "gatekeepers".Īs previously reported, the European Union's Digital Markets Act came into force on 1 November 2022. Beyond investigations into its Buy Box practices, we have also seen regulatory investigations into its use of marketplace seller data, its favouring of its own logistics services and its practices around offering products to Amazon Prime users. The £900 million claim is only the latest in a string of competition law action taken against Amazon. On this basis, the FCA is likely to be particularly concerned with Amazon's entry into the insurance market. The FCA has expressed particular competition concerns with Big Tech firms' ability to embed themselves as gatekeepers with their data advantages, ecosystems and access to large user bases in the context of insurance. Most recently, following Amazon's announcement that it intends to launch its own price comparison website, the Financial Conduct Authority's (FCA) Competition Division launched a discussion paper and consultation concerning the impact on competition associated with the entry and expansion of Big Tech (including Amazon) in retail financial services. The increasing scrutiny on Amazon extends beyond its Buy Box practices. This investigation will cover three key areas, including how Amazon sets its criteria for allocation of suppliers to be preferred in the Buy Box. The Competition and Markets Authority (CMA) launched its own investigation into Amazon's suspected anti-competitive practices on 5 July 2022. The European Commission is currently considering the commitments offered by Amazon, designed to address its competition concerns. This, it considers, may harm various groups including other marketplace sellers and consumers who may not get the best deals. The European Commission has preliminarily found that Amazon's rules and criteria for its Buy Box unduly favour its own retail business alongside those that use Amazon's logistics and delivery services. It is alleged that the exclusion of independent sellers from the Buy Box obscures the full range of options available to consumers, including products offered on cheaper or better terms. It is reported that the collective legal action will be filed in the United Kingdom's Competition Appeal Tribunal, with consumer rights advocate, Julie Hunter, as class representative and will claim that the Buy Box uses a self-preferencing algorithm which ensures that it almost always features goods sold directly by Amazon or sellers that use Amazon's order fulfilment services. Amazon's use of the Buy Box, which accounts for more than 80% of Amazon's sales, is already under regulatory scrutiny in the EU and UK, but it now faces an action seeking damages of approximately £900 million on behalf of UK consumers who have made purchases through Amazon's platform since October 2016. FTC and other regulatory agencies in their review of the Amazon-iRobot merger.The Buy Box refers to a box that appears on product listings on Amazon and features the price and shipping from a single seller at a time, selected by Amazon's algorithm, as well as the “Add to Cart” button. Consumer groups had voiced concerns after the deal was announced last year that it would further the e-commerce giant’s dominance in the smart home market.Īmazon said it’s “working cooperatively with the relevant regulators in their review of the merger.”īedford, Massachusetts-based iRobot, which makes the popular Roomba robotic vacuum cleaners, said it “continues to work cooperatively with both the U.S. by the Federal Trade Commission amid worries about Amazon’s growing market power. The acquisition is already facing a review in the U.S. watchdog invited comments on the deal from “any interested party.” The Competition and Markets Authority said Thursday that it’s considering whether the deal will result in a “substantial lessening of competition” within the United Kingdom. LONDON (AP) - British antitrust regulators have started investigating Amazon’s purchase of robot vacuum maker iRobot, adding further scrutiny to the $1.7 billion deal.
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