Amazon Agrees To Settle European Union Antitrust Cases and Avoids Fines

Amazon this week agreed to settle two antitrust cases with the European Union about its use of non-public seller data and possible bias in selecting sellers to qualify for Prime and a so-called Buy Box.

Amazon will avoid a fine as part of the settlement, but if it does not adhere to commitments to change, the online retailer could be fined up to 10% of its total global revenue, the European Commission said Tuesday.

The EU launched an investigation in 2019 into Amazon’s use of sellers’ private data. The commission found Amazon relied on the sellers’ information to make business decisions about its own products, preventing fair competition.

In a second investigation, the Commission “preliminarily concluded that Amazon’s rules and criteria for the Buy Box and Prime unduly [favor] its own retail business, as well as marketplace sellers that use Amazon’s logistics and delivery services,” according to an EU press release.

Buy Box is the “Add to Cart” and “Buy Now” section on an Amazon listing from a specific seller. Without a Buy Box, a listing will instead say, “See All Buying Options,” and instead of a specific business, it will say, “Available from these sellers.”

As part of the settlement, Amazon committed to not using non-private data, treating sellers equally when selecting ones to display a Buy Box and setting non-discriminatory conditions for sellers to qualify for Prime.

Amazon said Tuesday that it disagrees with several of the Commission’s allegations, but the settlement will ensure it will be able to serve customs and businesses in Europe, The Wall Street Journal reported.

EU Executive Vice President Margrethe Vestager, the bloc’s top antitrust regulator, said of the motion: “Today’s decision sets the rules that Amazon will need to play by in the future, instead of Amazon determining these rules for all players on its platform.”