The European Commission (EC) has legally obliged Amazon to comply with its commitments to allow more competition on its online marketplace. These commitments refer to competition concerns with regards to Amazon's use of non-public marketplace seller data, how it grants sellers access to its Buy Box (prominently displaying the offer of one seller and allowing for swift purchases by directly clicking on a buy button), and Amazon's Prime program.
This is a selection of the final and legally binding commitments:
- Use of data: Amazon commits to not use non-public data about independent retailers using its online marketplace to favor sales of branded products and of its own products.
- Buy Boxes: Amazon must ensure that there is no bias in granting sellers access to its so-called Buy Boxes and also has to display a new second competing Buy Box that is prominently presented and to include a review mechanism in case the presentation is not attracting adequate consumer attention.
- Prime: Amazon must ensure that independent retailers using the online marketplace can obtain the Amazon Prime label based on non-discriminatory criteria and irrespective of whether they use third party shipping and logistics services or Amazon’s own distribution network.
- Amazon extends the duration of these commitments relating to the second Buy Box and Prime to seven years.
Monique Goyens, BEUC Director General, noted: “Amazon’s commitments should mean that it will offer consumers greater choice on its online marketplace so that consumers can more easily shop around for the best deals. The Commission’s decision to accept these commitments avoids years of further legal wrangling and long-drawn-out court battles. That said, consumers will only feel the benefits of these remedies if the Commission ensures that they are applied in practice. The Commission must closely monitor Amazon’s compliance with its commitments, evaluate whether they are successfully boosting consumer choice, and must insist on improvements if necessary.”
Source: EC & BEUC
More information & BEUC press release