EU files charges against Amazon over use of data

&Tab;&Tab;<div class&equals;"wpcnt">&NewLine;&Tab;&Tab;&Tab;<div class&equals;"wpa">&NewLine;&Tab;&Tab;&Tab;&Tab;<span class&equals;"wpa-about">Advertisements<&sol;span>&NewLine;&Tab;&Tab;&Tab;&Tab;<div class&equals;"u top&lowbar;amp">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;<amp-ad width&equals;"300" height&equals;"265"&NewLine;&Tab;&Tab; type&equals;"pubmine"&NewLine;&Tab;&Tab; data-siteid&equals;"111265417"&NewLine;&Tab;&Tab; data-section&equals;"1">&NewLine;&Tab;&Tab;<&sol;amp-ad>&NewLine;&Tab;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;&Tab;<&sol;div>&NewLine;&Tab;&Tab;<&sol;div><p>European Union regulators have filed charges against Amazon&comma; accusing the e-commerce giant of using data to gain an unfair advantage over merchants using its platform&period;<&sol;p>&NewLine;<p>The EU’s executive commission said on Tuesday that the charges have been sent to the company&period;<&sol;p>&NewLine;<p>The commission said it takes issue with Amazon’s systematic use of non-public business data to avoid &OpenCurlyDoubleQuote;the normal risks of competition and to leverage its dominance” for e-commerce services in France and Germany&comma; the company’s two biggest markets in the EU&period;<&sol;p>&NewLine;<p>The EU started looking into Amazon in 2018 and has been focusing on its dual role as a marketplace and retailer&period;<&sol;p>&NewLine;<p>In addition to selling its own products&comma; the US company allows third-party retailers to sell their own goods through its site&period; Last year&comma; more than half of the items sold on Amazon worldwide were from these outside merchants&period;<&sol;p>&NewLine;<p>Executive vice president Margrethe Vestager&comma; the EU commissioner in charge of competition&comma; said it is not a problem that Amazon is a successful business but &OpenCurlyDoubleQuote;our concern is very specific business conduct which appears to distort genuine competition”&period;<&sol;p>&NewLine;<p><&excl;--Ads1--><&sol;p>&NewLine;<p>Amazon faces a possible fine of up to 10&percnt; of its annual worldwide revenue&comma; which could amount to billions of pounds&period;<&sol;p>&NewLine;<p>The company has rejected the accusations&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;We disagree with the preliminary assertions of the European Commission and will continue to make every effort to ensure it has an accurate understanding of the facts&comma;” the company said in a statement&comma; adding that it represents less than 1&percnt; of the global retail market and that there are bigger retailers in every country where it operates&period;<&sol;p>&NewLine;<p>The company can&comma; under EU rules&comma; reply to the charges in writing and present its case in an oral hearing&period;<&sol;p>&NewLine;<p>Investigators analysed data covering 80 million transactions and 100 million products listed on Amazon’s site&period;<&sol;p>&NewLine;<p>Ms Vestager said they found that &OpenCurlyDoubleQuote;very granular&comma; real time business data” on third-party product listings and transactions was fed into algorithms for Amazon’s retail business that decide which new products to launch&comma; their price and supplier&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;In other words&comma; this is a case about big data&comma;” Ms Vestager told a press briefing in Brussels&period;<&sol;p>&NewLine;<p>Ordinary retailers take risks when they invest heavily to find new products&comma; bring them to market and decide how much to sell them for&comma; Ms Vestager said&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;Our concern is that Amazon can avoid some of those risks by using the data it has access to&comma;” she added&period;<&sol;p>&NewLine;<p><&excl;--Ads2--><&sol;p>&NewLine;<p>The preliminary conclusion&comma; she said&comma; is that by using the data Amazon can focus on the best-selling products&comma; &OpenCurlyDoubleQuote;and this marginalises third-party sellers and caps their ability to grow&period;”<&sol;p>&NewLine;<p>Ms Vestager also opened a second investigation that will look at the criteria Amazon uses to decide which seller’s product gets chosen for the &OpenCurlyDoubleQuote;buy box” and for its Prime membership service&comma; and whether that means they get preferential treatment by the company’s logistics and delivery services&period;<&sol;p>&NewLine;<p>The buy box&comma; found on the right side of Amazon’s site&comma; lets shoppers add items directly to their shopping baskets&period; The box features a single seller’s product even though multiple merchants might offer it&period;<&sol;p>&NewLine;<p>The second investigation excludes Italy&comma; because the country’s competition watchdog has already launched a similar probe last year&period;<&sol;p>&NewLine;<p>It is the EU’s latest effort to curb the power of big technology companies&comma; following a series of multi-billion pound fines against Google in previous years&period;<&sol;p>&NewLine;&Tab;&Tab;&Tab;<div style&equals;"padding-bottom&colon;15px&semi;" class&equals;"wordads-tag" data-slot-type&equals;"belowpost">&NewLine;&Tab;&Tab;&Tab;&Tab;<div id&equals;"atatags-dynamic-belowpost-68ece801827e9">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;<script type&equals;"text&sol;javascript">&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;getAdSnippetCallback &equals; function &lpar;&rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;if &lpar; false &equals;&equals;&equals; &lpar; window&period;isWatlV1 &quest;&quest; false &rpar; &rpar; &lbrace;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&sol;&sol; Use Aditude scripts&period;&NewLine;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;&Tab;window&period;tudeMappings &equals; 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