Amazon is under investigation by Germany’s Federal Cartel Office

Amazon CEO Jeff
Bezos.
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Images

• Germany’s competition watchdog has launched an
  investigation into whether Amazon is abusing the dominance of
  its marketplace platform.
• The probe was prompted by numerous complaints lodged
  against Amazon by third-party sellers.
• It will run in tandem with a similar investigation by
  the EU into Amazon’s marketplace.

Germany’s competition watchdog has launched an investigation into
Amazon over the potential abuse of its marketplace platform.

The president of the Federal Cartel Office (Bundeskartellamt),
Andreas Mundt,
said in a statement:

“Amazon is the largest online retailer and operates by far the
largest online marketplace in Germany. Many retailers and
manufacturers depend on the reach of Amazon’s marketplace for
their online sales. Amazon functions as a kind of ‘gatekeeper’
for customers.

“Its double role as the largest retailer and largest marketplace
has the potential to hinder other sellers on its platform.
Because of the many complaints we have received we will examine
whether Amazon is abusing its market position to the detriment of
sellers active on its marketplace. We will scrutinize its terms
of business and practices towards sellers.”

The EU is also currently looking into whether Amazon could be
abusing the dominance of its market platform, and this summer the
European Commission
sent out questionnaires to Amazon third-party sellers to gather
information.

The Federal Cartel Office said the two investigations will
supplement each other, with the Commission focussing on the
possibility that Amazon uses data to disadvantage sellers, and
the German watchdog scrutinising “the company’s terms of business
and practices towards sellers on its German Amazon marketplace.”

When contacted by Business Insider, an Amazon spokesman said the
company does not comment on ongoing proceedings. “However, we
will cooperate fully with the Bundeskartellamt and continue
working hard to support small and medium-sized businesses and
help them grow,” he added.