Here’s how Amazon will avoid the EU data fine
According to the Financial Times, Amazon will share more data with competitors after an agreement with the EU
Amazon comes to terms with the European antitrust.
The American e-commerce giant will share more data with competitors and offer shoppers a wider choice of products.
This is what is expected from an agreement between Amazon and the EU antitrust regulators to conclude two of the most high-profile investigations in Brussels.
The details of the deal will be shared with Amazon's competitors to make sure they eliminate competition problems before the European Commission can announce an agreement.
In November 2020, EU antitrust regulators accused Amazon of distorting competition in online retail markets and opened a second investigation into the company's business practices.
“A deal means Amazon will avoid formal charges of violating EU law and hefty fines of up to 10% of global revenues. Brussels will avoid a lengthy legal battle in EU courts and ensure compliance before the tougher digital standards come into effect next year, ”comments the London daily.
On Tuesday, the EU Parliament definitively approved the new law on digital services (DSA) and the law on digital markets (DMA). The latter in particular aims to ensure that no large online platform that is in a gatekeeper position against a large number of users abuses its position to the detriment of businesses wishing to access such users.
Meanwhile, on Tuesday, the UK antitrust said it had opened an investigation into Amazon to see if the tech giant was hurting competition by offering its sellers an unfair advantage in its market over third parties.
All the details.
WHAT IS THE DATA AGREEMENT BETWEEN AMAZON AND THE EU ANTITRUST?
As part of the deal, Amazon will allow third-party sellers in its marketplace to access more information that can help them sell more products online.
The deal comes three years after antitrust officials opened an investigation into Amazon's alleged anticompetitive practices in how it handles competitor data.
THE FEARS OF BRUSSELS
Investigators suspected that Amazon, with its dual role as both marketer and retailer on its platform, was violating EU law by using market-sensitive information to artificially favor its retail business at the expense of rivals.
THE NEXT STEPS
Regulators will announce the so-called market test next week before a deal is formally agreed after the summer. Three people familiar with the matter told the FT that there may be small changes but nothing that could derail a deal.
According to three sources with knowledge of the facts, the timing and details of the agreement could still change.
It is not the first time that Amazon has reached an agreement with the European Commission, Reuters recalls. In 2017, Brussels accepted commitments from Amazon after opening an investigation to examine whether the Seattle-based online retailer unfairly excluded rivals from the e-book market.
THE BRITISH CMA SURVEY
For a surviving investigation, another prospects in Europe for the technological giant founded by Jeff Bezos.
The UK Competition and Markets Authority (CMA) announced on Tuesday the opening of an investigation into Amazon. In particular, the UK regulator will investigate how Amazon collects and uses data from third-party sellers and how it establishes eligibility criteria for sale with the Prime label.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/ecco-come-amazon-evitera-la-multa-ue-sui-dati/ on Thu, 07 Jul 2022 06:03:57 +0000.