Amazon promises fairer selling scheme to avoid EU fines

Amazon is making major commitments to try to evade EU fines for allegedly misusing seller data. The European Commission is seeking public comment on Amazon's proposals that theoretically give third-party sellers a better chance to compete with Amazon's direct sales. The company is committed to avoiding the use of private seller data in situations where there is competition with Marketplace stores, whether obtained through automated tools or employee access.

The company also promised "non-discriminatory" terms for third parties selling to Prime subscribers, including a choice of delivery and logistics services. Amazon also won't use participants' Prime data to help out with its own logistics, according to a proposal. In another pledge, Amazon promised "equal treatment" when ranking sellers in the Buy Box section that allows you to purchase goods quickly. Finalists will also have a better chance of catching your eye: you'll see a second offer in the buy box if it's significantly different in price or delivery.

Comments on the proposals will remain open until September 9. Whatever conditions the EU accepts will remain in place for five years under the supervision of an administrator reporting to the Commission. They would also cover the whole of the European Economic Area, although the Buy Box and Prime changes would not apply to Italy as the country already required changes to Amazon's behavior.

In a statement, Amazon told Engadget it still believes the EU is "unfairly" targeting the company with legal efforts such as the Digital Markets Act, but is "committing to constructive way" with the regulators to solve the problems. You can read the full answer below. He previously denied allegations in an April 2020 Wall Street Journal report that he misused data from third-party sellers to launch competing products, and said the practice was against its policies. However, he has come under fire from the US House Judiciary Committee for allegedly withholding documents and obstructing an investigation into his practices. The internet giant claimed it was offering "cooperation in good faith" with the House investigation.

If the Commission gives the green light to the proposals, they could end a long saga. The EC opened an antitrust investigation in July 2019 over concerns that Amazon may have used sensitive market information to give itself an unfair advantage, and in November 2020 offered a preliminary position that Amazon should not rely on the commercial data of these merchants to refine its sales. strategy. That said, Amazon won't avoid further problems even if the EU deal progresses. It's still under investigation by the SEC in the US, not to mention a Senate bill to help third parties sell through platforms like Amazon.

"While we are seriously concerned that the Digital Markets Act unfairly targets Amazon and a few other US companies, and disagree with several findings of the European Commission, we we have engaged constructively with the Commission to address their concerns and safeguard our ability to serve European customers and the more than 185,000 European small and medium-sized businesses that sell in our stores.No business cares so much about small businesses or has done more to support them over the past two decades than Amazon."

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