The European Commission has finally concluded that the e-commerce mega-company Amazon has indeed breached the European antitrust rules by means of using its independent sellers' data for the company to benefit. This puts Amazon in quite a heated position as the holidays are coming up fast and there are only two months left of 2020.
Amazon Antitrust Case
According to an article by CNBC, aside from the findings of Amazon breaking European's antitrust rules, the EU Commission has announced that it will launch a second formal investigation regarding the company's known e-commerce processes. This decision follows the Commission, which functions as the executive arm of the official European Union.
The European Union announced a formal probe into the mega-online retailer some time back in July 2019 due to concerns of its anti-competitive behavior. In the statement still reported by CNBC, the Commission stated that it took the whole issue with Amazon using the given business data of other independent sellers within its marketplace to be able to benefit its very own retail business.
Second Amazon antitrust investigation due to violations
According to the European Union's competition chief known as Margrethe Vestager, it was stated that data on the data of those third-party sellers should definitely not be used in order for Amazon to benefit when it also acts like a direct competitor of the given sellers. Amazon stated that it disagreed with the given assertions by the Commission.
Aside from the disagreement, Amazon then insured that it will continue to give more effort into ensuring that the company has gained an accurate understanding of the given facts. Amazon has also stated that it only represents just less than 1% of the entire global retail market.
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Amazon antitrust 2020: E-commerce megacompany's reply to allegations
The e-commerce giant then stated that no company really cares more about other small businesses or even has done more in order to support them over the last two decades in comparison to Amazon. The Commission's own second antitrust investigation is stated to be a possible preferential treatment towards Amazon's very own retail business towering over marketplace sellers making use of its given logistics and delivery services.
The company is said to be given a chance to examine the conclusions by the Commission and also reply in writing or even through an oral hearing. Amazon has grown slowly over the past two decades but now, Amazon is one of the most valuable (if not the most valuable) companies of 2020.
With the whole coronavirus going on, Amazon was able to boost its sales since e-commerce became the safest way for people to purchase products. This has propelled Amazon to increase its profits despite the ongoing coronavirus while other companies have been decreasing in value. Jeff Bezos is now known as the richest person in the world according to the findings of investopedia.
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This article is owned by Tech Times
Written by Urian Buenconsejo
