🔍 Amazon’s price controls under investigation
Germany’s Federal Cartel Office is investigating Amazon for anti-competitive practices, focusing on price control algorithms. These algorithms can limit the visibility of products, making it harder for small businesses to compete. “We are looking at how Amazon influences pricing on its platform,” stated a Federal Cartel Office representative. This is part of broader oversight on large digital companies like Amazon, Google, and Meta.
📊 Retailers asked for feedback
The Federal Cartel Office launched a survey to 2,000 Amazon retailers to collect feedback on how Amazon’s price controls affect them. Retailers received an electronic questionnaire, seeking details on how Amazon’s algorithms impact their pricing strategies. “We need to understand the effects of Amazon’s controls on competition,” said the office. This follows requests for contact details of all German-based retailers from Amazon.
🚫 Brand gating examined
Another practice under investigation is Amazon’s brand gating, where the company, in cooperation with manufacturers, restricts who can sell certain branded products. This limits smaller businesses from selling popular brands. Brand gating could create unfair barriers for retailers trying to access high-demand items, further reducing competition.
💬 What’s next for retailers?
The survey is expected to provide insights into how Amazon's price control mechanisms and brand gating affect small retailers. Based on the results, the Federal Cartel Office could introduce new regulations. Retailers who feel disadvantaged by Amazon’s practices could see relief if the investigation leads to policy changes or penalties for Amazon. The outcome remains to be seen, but pressure on Amazon is mounting.
Should Amazon be regulated for its pricing tactics?
