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        <title><![CDATA[EU accuses Amazon of using merchants&#8217; data to boost its own business]]></title>
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        <link>https://usagag.com/2020/11/10/eu-accuses-amazon-of-using-merchants-8217-data-to-boost-its-own-business/</link>
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            <media:title type="html">EU accuses Amazon of using merchants&#8217; data to boost its own business</media:title>
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						<p>European Union officials charged Amazon with antitrust violations Tuesday for allegedly harvesting data from outside merchants to boost its own retail business.</p>
<p>The European Commission said it has also opened a second antitrust investigation into whether the e-commerce giant gives special treatment to its own offers and to merchants who use its delivery services.</p>
<p>&#8220;Data on the activity of third party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers,&#8221; Margrethe Vestager, the EU&#8217;s competition commissioner, said in a <strong>statement</strong>. &#8220;The conditions of competition on the Amazon platform must also be fair.&#8221;</p>
<p>The charges brought Tuesday grew out of a probe the European Commission started in July 2019 that focused on Amazon&#8217;s &#8220;dual role&#8221; as a retail marketplace and a seller that competes with merchants on its platform, a dynamic that has also <strong>drawn scrutiny</strong> in the US.</p>
<p>The Seattle-based company can respond to the allegations in writing and request a hearing to defend itself before the EU makes a final decision in the case, which is expected to come next year.</p>
<p>EU officials say they found evidence that employees at Amazon&#8217;s retail business have access to &#8220;very large quantities&#8221; of data from outside merchants, including their revenues and the numbers of products ordered and shipped from their stores.</p>
<p>Amazon aggregates that data and uses it to calibrate its own retail offerings and business decisions &#8220;to the detriment of the other marketplace sellers,&#8221; the European Commission said. Officials say the practice lets Amazon leverage its dominance and &#8220;avoid the normal risks of retail competition&#8221; in France and Germany, its largest EU markets.</p>
<p>The EU&#8217;s new probe will examine how Amazon chooses the products that are featured in its &#8220;Buy Box,&#8221; which allows customers to add items from specific retailers directly into their shopping cart. <span >Officials say they&#8217;ll look at whether Amazon&#8217;s criteria for making those picks favor its own retail business or merchants that use its logistics services.</span></p>
<p>Amazon said it disagrees with the commission&#8217;s assertions and noted that more than 150,000 European businesses generate tens of billions of euros in revenues through its stores each year.</p>
<p>&#8220;Amazon represents less than 1 percent of the global retail market, and there are larger retailers in every country in which we operate,&#8221; an Amazon spokesperson said in a statement. &#8220;No company cares more about small businesses or has done more to support them over the past two decades than Amazon.&#8221;</p>
<p>Tuesday&#8217;s moves marked the EU&#8217;s latest effort to enforce competition rules against massive American tech companies as they face growing regulatory scrutiny in the US.</p>
<p>The European Commission has also slapped Google with <strong>hefty antitrust fines</strong> in recent years while waging a legal battle with Apple over <strong>$15 billion in back taxes</strong> allegedly owed by the iPhone maker.</p>
<p><em>With Post wires</em></p>
			
					
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