Overview of the Fine and Prohibition
The Bundeskartellamt, Germany's Federal Cartel Office, has imposed a 70 million euro fine on Amazon for influencing prices charged by third-party sellers on its Marketplace in the country.
The regulator has prohibited Amazon from continuing its use of various price control mechanisms that review and penalize prices set by these sellers.
Details of Amazon's Price Control Practices
If Amazon deems a listing's price too high, it allegedly removes the listing entirely or prevents it from appearing prominently in the Buy Box, which facilitates quick purchases.
Listings not removed are relegated to less visible areas, such as the 'See all buying options' or 'Other sellers on Amazon' sections.
This reduced visibility can lead to significant sales losses for sellers.
Anti-Competitive Implications
Amazon was found to engage in anti-competitive practices because it operates its own retail business on the platform, making third-party sellers—who account for 60 percent of items sold—direct competitors.
Such interference could prevent sellers from covering their costs, potentially forcing them out of the Marketplace.
Amazon must only be allowed to influence competitors’ pricing “in the most exceptional cases,” such as “in the event of excessive pricing.”
Allowing the company to continue its current practices will give it the power to “control the price level on the trading platform according to its own ideas.”
Amazon could use its mechanisms “to compete with the rest of the online retail sector outside” of its own website.
Amazon's Response
Rocco Bräuniger, Amazon’s country manager for Germany, stated that the company will appeal the ruling and continue operating as usual.
“Amazon would be the only retailer in Germany forced to highlight non-competitive prices for customers,” he said. “This makes no sense for customers, sales partners, or competition.”
Broader Context and Legal Basis
Amazon has faced scrutiny in Europe for years; in 2022, it pledged not to use private sellers’ data to compete with them in the EU Marketplace and to provide equal treatment in Buy Box rankings.
The Bundeskartellamt considers this systematic interference an abuse under Section 19a(2) of the German Competition Act (GWB), as well as violations of Section 19 GWB and Article 102 TFEU.
“The Bundeskartellamt considers this systematic interference in the Marketplace sellers’ freedom to set their own prices to constitute an abuse under the special provisions for large digital companies (Section 19a(2) of the German Competition Act (GWB)) as well as a violation of the general abuse provisions under Section 19 GWB and Article 102 TFEU,” the agency wrote. “…In these proceedings, the Bundeskartellamt has worked closely with the European Commission, which is responsible for enforcing the EU Regulation on contestable and fair markets in the digital sector (Digital Markets Act).”
Details of the Penalty
The 70 million euro fine is a partial payment based on the economic benefits Amazon gained from its anti-competitive behaviors.
Since the identified antitrust violations are ongoing, Amazon may face additional penalties.
