The European Commission is investigating whether Amazon's business model leads to unfair competition. External companies can sell their products through Amazon's platform. The online shopping giant uses that sales datato benefit themselves.
The European Commission has been scrutinising Amazon's business model since last year. A formal investigation was launched on Wednesday, Danish European Commissioner Margrethe Vestager revealed.
Amazon would use the data it gathers through its platform to disadvantage third-party sellers. For example, it knows which products are popular with which audiences, information that smaller parties selling through Amazon do not have.
The investigation focuses on the standard agreements between retailers and Amazon, which state that the company may use and analyse data. "E-commerce has spurred competition in the retail sector, bringing more choice and better prices for consumers. We need to ensure that large web platforms do not eliminate those benefits through anti-competitive behaviour," Vestager said.
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