Amazon Faces EU Scrutiny Over Alleged Price Restrictions on Third-Party Sellers
Amazon is facing scrutiny from the European Commission over allegations that its systems may be restricting third-party sellers' ability to offer lower prices on competing marketplaces or their own websites. The investigation, which began in early stages under the EU's Digital Markets Act (DMA), focuses on whether Amazon's practices comply with the DMA's rules prohibiting gatekeepers from using parity requirements.
The concern is that Amazon's systems could reduce the visibility of products when sellers offer a lower price elsewhere, effectively giving Amazon the ability to influence pricing beyond its own platform. The European Commission has previously acknowledged broader concerns about this issue and has been questioning businesses that sell through Amazon about potential price-parity practices.
One seller who was questioned as part of the latest scrutiny is Jack Nekhala, inventor of the Bed Scrunchie. He told Bloomberg that selling his product for less through his company's own website could result in it being suppressed on Amazon's marketplace, which he argued gives Amazon the ability to influence pricing beyond its own platform.
Amazon maintains that it complies with the rules and has told regulators that it does not employ parity clauses incompatible with the DMA. However, the Commission will continue assessing whether gatekeepers are using alternative practices that could produce similar effects.