Amazon to Address Concerns Raised by UK Competition Regulator
In response to concerns raised by the Competition and Markets Authority (CMA), Amazon has announced its willingness to make changes to the way it treats third-party sellers on its e-commerce platform, Marketplace. The CMA had been investigating allegations that Amazon was using its dominant position in the UK’s online retail market to unfairly favor its own retail business and logistics rivals.
As part of its commitments, Amazon has agreed not to exploit rival sellers’ Marketplace data to gain an unfair advantage. It will also ensure that all product offers are treated equally when determining which ones are featured in the coveted ‘Buy Box’. Additionally, third-party businesses using Marketplace will be allowed to negotiate their own rates directly. To monitor compliance with these commitments, Amazon will appoint an independent trustee.
These measures aim to level the playing field for third-party sellers, giving them a fair chance of being prominently displayed in the ‘Buy Box’ alongside Amazon’s own products.
In pre-market trading, Amazon’s shares on Nasdaq are currently valued at $127.18, representing a 1.51% decrease.