EU files antitrust charges against Amazon over use of data

International

FILE – In this Oct. 23, 2018, file photo, an Amazon logo is seen atop the Amazon Treasure Truck The Park DTLA office complex in downtown Los Angeles. Five technology giants reported mixed earnings results Thursday, Oct. 29, 2020 a sign of varying fortunes as they try to rebound from an pandemic-related economic slowdown earlier this year. While all five — Amazon, Google parent Alphabet, Facebook, Apple and Twitter — exceeded analyst expectations, gloomy forecasts and other uncertainties led to share-price declines for all but Alphabet in after-market trading. (AP Photo/Richard Vogel, File)

LONDON (AP) — European Union regulators have filed antitrust charges against Amazon, accusing the e-commerce giant of using data to gain an unfair advantage over merchants using its platform.

The EU’s executive commission, the bloc’s top antitrust enforcer, said Tuesday that the charges have been sent to the company.

The commission said it takes issue with Amazon’s systematic use of non-public business data to avoid “the normal risks of competition and to leverage its dominance” for e-commerce services in France and Germany, the company’s two biggest markets in the EU.

The EU started looking into Amazon in 2018 and has been focusing on its dual role as a marketplace and retailer.

In addition to selling its own products, the U.S. company allows third-party retailers to sell their own goods through its site. Last year, more than half of the items sold on Amazon worldwide were from these outside merchants.

Amazon faces a possible fine of up to 10% of its annual worldwide revenue, which could amount to billions of dollars. The company rejected the accusations.

“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,” the company said in a statement.

The company can, under EU rules, reply to the charges in writing and present its case in an oral hearing.

It’s the EU’s latest effort to curb the power of big technology companies, following a series of multibillion dollar antitrust fines against Google in previous years.

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Trending Stories