On the same day Germany confirmed it can apply special abuse controls to the online retailer, the UK antitrust watchdog opened an investigation into Amazon.
The investigation will look at whether or not Amazon has a dominant position in the market and if it is abusing that position and giving an unfair advantage to its own retail business or sellers.
The UK stopped being a member of the European Union at the start of last year. The country is no longer bound to avoid duplicating Commission-led probes now that it has left the bloc.
Three main areas will be the focus of the investigation.
Sarah Cardell, a general counsel and currently interim CEO at theCMA, commented on the action.
“Millions of people across the UK rely on Amazon’s services for fast delivery of all types of products at the click of a button. This is an important area so it’s right that we carefully investigate whether Amazon is using third-party data to give an unfair boost to its own retail business and whether it favours sellers who use its logistics and delivery services – both of which could weaken competition.
“Thousands of UK businesses use Amazon to sell their products and it is important they are able to operate in a competitive market. Any loss of competition is a loss to consumers and could lead to them paying more for products, being offered lower quality items or having less choice.
“A formal investigation will allow us to consider this matter properly.”
The UK probe was brought to the attention of Amazon.
The EU investigation is on the verge of being resolved, according to a report in the FT, which suggests Amazon will offer to share more data with rivals and give buyers a wider choice of products to settle the EU's action.
It was reported earlier this month that Amazon was trying to avoid an EU antitrust fine by sharing data with rivals.
There has been no official word from the Commission.
Since the UK is not part of the EU's competition regime, any deal between Amazon and EU regulators will not affect the probe.
The Commission probe into "similar concerns" doesn't cover "ongoing issues affecting the UK now that it has left the European Union" As its own investigation progresses, it will seek to liaison with EU counterparts.
Following an intervention by Germany's Federal Cartel Office, Amazon agreed to make changes to the terms it offered sellers.
An update to domestic competition law that is intended to target digital giants' market power has prompted the FCO to assess whether Amazon meets the threshold for special abuse controls. The FCO has confirmed that Amazon does meet the threshold for the ex ante powers to apply in regards to its marketplace services for third party sellers.
The determination will allow the FCO to intervene and prohibit potential anticompetitive practices of Amazon more effectively, according to the president.
Amazon will face more and faster antitrust interventions in the German market, which is ahead of the regional curve on updating digital competition rules.
There is a probe looking at the extent to which it is influencing the pricing of sellers on Amazon Marketplace by means of price control mechanisms and algorithm, as well as a second examining agreements between Amazon and brand manufacturers to check whether exclusions are placed on third-party sellers on Amazon Marketplace.
The EU has a merchant seller data probe, whereas the FCO has Amazon investigations.
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