European regulators are investigating Amazon, while new antitrust rules loom in the US
Authorities around the world are becoming increasingly wary of the influence Big Tech has over our lives. New antitrust regulations and more scrutiny towards companies like Amazon, Google, Apple, and Meta are supposed to create a fairer environment for competitors, fostering more choice and further improvements for consumers. With Prime Day around the corner, a German antitrust body is now looking into Amazon for its market-dominating position.
The German antitrust authorities are looking into stricter oversight and competition controls for Amazon. The decision comes based on a new 2021 law meant to combat restrictions on competitions from market gatekeepers. The German federal cartel office has found it to have central power over the e-commerce business in the country. The authorities estimate that more than half of revenue generated in that area goes to Amazon. With this power, Amazon is in a position that can allow it to force third-party sellers to stay on its platform, which could hinder competing commerce platforms from expanding their own services.
The President of the German federal cartel office, Andreas Mundt, said, "Amazon is the key player in the e-commerce sector. The company acts as a seller, marketplace, streaming and cloud services provider, among others, and has combined its services to form a digital ecosystem. We have determined that the company is an undertaking of paramount significance for competition across markets, also within the meaning of competition law."
The regulator is additionally keeping an eye on Amazon Prime and its video and audio streaming services as well as Amazon’s web services (AWS) business, which powers many websites around the world.
Similar proceedings have already been taken against Google Maps, Apple’s new anti-ad tracking measures, and Meta’s convenient coupling of Facebook and Oculus. The regulator is additionally separately looking into Amazon’s influence on pricing for third-party sellers on its platform and restrictions the company imposes on them when it comes to selling certain brands’ goods.
Pressure is mounting on Amazon and other big tech players in other areas and places, too. Amazon has just been forced to make canceling Amazon Prime a one-click action due to a new European law. Additionally, the EU has now passed a law that could, in theory, make it possible to break up the tech giants, and give regulators more options to create fairer environments for all players. In the US, bills against large tech players are currently enjoying bipartisan support and could be passed before the summer break.
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