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Amazon’s Settlement with the EU. Here’s What You Should Know

Amazon has just avoided one of the largest fines ever issued. European Union and the UK’s regulators have been investing Amazon’s data usage intended to benefit its own products for a while. Three investigations took place in the EU to identify Amazon’s market position abuse and its decisions regarding favoring certain sellers.

However, after what it calls a constructive dialogue, Amazon succeeded in convincing the European Commission that the company will implement the decision not to collect information from partners — third-party merchants — anymore for at least 5 years.

Amazon has also agreed to add a second Buy Box. This decision comes from addressing concerns regarding unfairly favoring Fulfilment by Amazon (FBA) merchants for the Buy Box. The second Buy Box will be set for a rival product when it provides a difference in price and delivery. This promise must last at least seven years.

Another area of investigation was the choice of logistics and shipment providers by Amazon Prime sellers. Amazon used to prohibit Prime sellers from choosing their own logistics service. Now, the company is set to change this and allow choosing fulfillment providers for the sellers themselves for at least 7 years.

This way, Amazon avoided paying a fine that could reach up to 10% of its global turnover, which reached almost five bn dollars in 2021.

During the seven years of the settlement duration, Amazon will be supervised by an independent trustee. If the trustee identifies non-compliance, that same 10% turnover fine can be implemented, causing Amazon tangible harm.

Previously, Amazon was fined in Italy by the AGCM for market dominance abuse.

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