Italy investigates Amazon abuse of power over seller preference policy

The Italian competition and market authority AGCM is investigating possible abuse of power by Amazon. For example, the web store would place certain sales parties higher in the search results if they purchase logistics services from Amazon.

The research is mainly focused on Amazon’s logistics services. Thus, sellers who work with those services would get benefits from the company. For example, those parties may receive extra visibility in the web store. This would allow more items to be sold. According to the authority, these practices might make sellers more likely to opt for Amazon’s logistics services, which manage warehouses and shipments. If sellers were to use logistics parties other than Amazon, the sellers would not get these benefits.

To see whether Amazon is indeed abusing its power, the AGCM is conducting an investigation into the business practices of five Amazon companies. The financial investigation service has carried out inspections at these companies. The authority says it will be finished with the investigation in April 2020.

In November 2018, the German cartel watchdog also launched an investigation into possible abuse of power at Amazon. For example, the Bundeskartellamt says it has received many complaints about the course of events at the platform. This would include liability terms and conditions for sellers, as would rules about product reviews, non-transparent removal of seller accounts and withholding or delaying payments.

Earlier this year, the EU announced that it would introduce rules on the transparency of trading venues. This includes how products are ranked in a marketplace. Marketplaces will soon have to show sellers how goods and services are ranked, so that sellers know how to improve their visibility. These rules are likely to come into effect next year.