In one of the two ongoing investigations, Amazon (NASDAQ: AMZN) is accused by the EU of unjustly exploiting independent sellers’ information to calibrate its own retail choices. This distorts fair competition on its platform. The second examination is on Amazon Prime and the “Buy” box, which shows an offer from a single seller and enables customers to quickly buy the item, is the subject of the second examination. The EU stated in a statement that both schemes “unduly favor Amazon’s retail operation.”
On Thursday, Amazon made several promises to resolve the claims. Non-public data generated by independent sellers will not be used by the tech giant. The business recommended treating all vendors equally and setting “nondiscriminatory requirements” for merchants to qualify.
For five years, the agreements will apply to all of Amazon’s present and planned markets in the European Economic Area, except Italy. Amazon’s plan is now being solicited for feedback by the European Union.
According to Amazon, the suggestion does not imply agreement with any initial opinions given by the European Commission.
But it does signal that the corporation is changing gears as it becomes increasingly obvious that regulatory obstacles will endure in the foreseeable future.
Europe has long been a pioneer when it comes to examining the impact of large technology companies on the world at large. As early as 2019, the European Union’s 27 members began an inquiry into Amazon’s business practices. But governments throughout the world, especially in the United States, are taking steps to rein in the dominance of Big Tech.
As the midterm elections approach, several observers are pessimistic that antitrust legislation against Big Tech will be enacted in the United States. According to an Evercore ISI poll, just 4% of Americans are very concerned about the way technology businesses operate, and fewer than 25% of Americans feel that tech regulation is a high priority.
An analyst at Amit Daryanani commented, “These data appear to suggest that typical voters view antitrust regulation as a low priority.” There’s a lower likelihood of substantial legislation reaching Congress since members are more inclined to concentrate on matters of greater importance to their constituents. “
Daryanani predicted that antitrust rhetoric would continue to dominate the news for the foreseeable future. That’s something we’ll have to see for ourselves if it has any effect.