CMA investigates Amazon over suspected anti-competitive practices

The Competition and Markets Authority (CMA) on Wednesday said it is investigating Amazon over concerns that practices affecting sellers on its UK Marketplace may be anti-competitive and could result in a worse deal for customers.

This new investigation follows a current European Commission probe looking into similar concerns, which does not cover ongoing issues affecting the UK now that it has left the European Union.

While some of the products on Amazon’s Marketplace are supplied through its own retail business, a large proportion is supplied by third-party sellers.

The CMA investigation will consider whether Amazon has a dominant position in the UK and whether it is abusing that position and distorting competition by giving an unfair advantage to its own retail business or sellers that use its services, compared to other third-party sellers on the Amazon UK Marketplace.

“Millions of people across the UK rely on Amazon’s services for fast delivery of all types of products at the click of a button. This is an important area so it’s right that we carefully investigate whether Amazon is using third-party data to give an unfair boost to its own retail business and whether it favours sellers who use its logistics and delivery services – both of which could weaken competition,” Sarah Cardell, General Counsel at the CMA, said.

The CMA clarified that it has not reached any conclusions at this stage as to whether or not competition law has been infringed.

The European Commission has previously opened two investigations covering the same areas. The CMA said it will seek to liaise with the European Commission as its own investigation in the UK progresses.

Alongside this case, the CMA also has an open investigation into Amazon and Google, under consumer protection laws, over concerns that they have not been doing enough to combat fake reviews on their sites.