Amazon facing EU investigation into favoring its own products

Amazon is most likely going to be Brussels’ next subject of an investigation. The European Commission is looking into whether the retailer favors its own products on its online marketplace.

That’s what people with knowledge of the matter told Reuters.

If Amazon endorses its own products and services over the competition’s, that’s a direct violation of the Digital Markets Act (DMA).

The DMA is legislation that was drafted to protect European consumers from powerful tech companies that abuse their dominant market position, offer them greater choice, and create a level-playing field for newcomers.

The DMA targets the largest players and digital platforms that operate in the EU, also known as ‘gatekeepers’. The European Commission has identified over twenty of these gatekeepers that offer ‘core platform services’ in the EU, including Amazon.

If found guilty, Amazon could face a fine of up to 10% of its global annual turnover, which was almost $575 billion in 2023.

An Amazon spokesperson told Reuters that the company is compliant with the DMA and is involved in constructive talks with the European Commission.

The timing and decision of launching an investigation isn’t a coincidence. Margrethe Vestager, Executive Vice-President for A Europe Fit for the Digital Age and Competition, is saying goodbye to the European Commission and is going to be the next President of the European Investment Bank (EIB).

Teresa Ribera will be taking over Vestager’s post as Executive Vice-President for the Clean, Just and Competitive Transition next month.

Amazon isn’t the only company Brussels is targeting for favoring its own products. The European Commission is allegedly drawing up a formal complaint against Google because of the way the US company displays its competitors’ products in search services like Google Flights and Google Hotels.

A Google spokesperson said that the company is trying “to balance the needs of different types of websites, while still respecting users’ choice”.