German antitrust authorities have raised concerns over Amazon’s pricing restrictions on its marketplace, deeming them “competition-poorly-thought-out”.
According to the preliminary assessment of the Federal Cartel Office, Amazon’s imposed price limits for third-party sellers on its platform could be a misuse of its dominant market position and a violation of general anti-abuse regulations. The office has given Amazon the opportunity to respond to the allegations.
The head of the Federal Cartel Office, Andreas Mundt, emphasized that the online retail competition in Germany is largely determined by the rules Amazon sets for its platform. As Amazon competes directly with other marketplace sellers, any influence on the pricing of its competitors, including through price ceilings, is fundamentally problematic in a competitive environment. This is particularly the case, he added, if the affected sellers can no longer cover their costs and the platform is used in a cartel-law-infringing manner to hinder the rest of the online retail market.