Amazon.com, Inc (NASDAQ: AMZN) is under investigation from German antitrust authorities, after the company blocked some sellers from its platform for allegedly setting high prices during the COVID-19 pandemic, according to local media reports Sunday.What Happened Third-party sellers allege that the Jeff Bezos-led company intervened in prices during the initial phase of the pandemic in Germany, which is Amazon's second-largest market after the United States."We are currently investigating whether and how Amazon influences how traders set prices on the market-place," Andreas Mundt, President of the Federal Cartel Office told local German media, as per Reuters.An Amazon spokeswoman refuted the allegations, claiming, the company's "systems are designed to take action against price gouging." Why It Matters Until 2013, Amazon required merchants not to offer their products on rival websites at lower prices than they were charging on its portal -- a policy the company abandoned after Germany's antitrust authorities intervened, Reuters noted.German authorities reportedly halted an investigation into Amazon last year after the company reached a deal with them over terms of service applicable to third-party merchants.In May, the retail giant asked the government in the United States to enact a law against price gouging during national emergencies. Amazon is also under an antitrust investigation in the European Union for allegedly violating competition rules. It faces a 10% penalty on its global annual revenues, if found guilty. Price Action Amazon shares closed nearly 0.4% lower at $3,148.02 on Friday, and were mostly unchanged in the after-hours session.See more from Benzinga * Amazon Launches Online Pharmacy Service In India * Tesla's 'Ulterior Motive' In Suing Rivian Was To Malign Its Image, Threaten Employees, Rival Retorts * Facebook Sued Over Illegal Collection Of Biometric Data — Again(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Read More...
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Amazon.com, Inc (NASDAQ:
AMZN) is under investigation from German antitrust authorities, after the company blocked some sellers from its platform for allegedly setting high prices during the COVID-19 pandemic, according to local media reports Sunday.” data-reactid=”19″>
Amazon.com, Inc (NASDAQ:
AMZN) is under investigation from German antitrust authorities, after the company blocked some sellers from its platform for allegedly setting high prices during the COVID-19 pandemic, according to local media reports Sunday.
What Happened
Third-party sellers allege that the Jeff Bezos-led company intervened in prices during the initial phase of the pandemic in Germany, which is Amazon’s second-largest market after the United States.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“We are currently investigating whether and how Amazon influences how traders set prices on the market-place,” Andreas Mundt, President of the Federal Cartel Office told local German media, as per Reuters.” data-reactid=”22″>“We are currently investigating whether and how Amazon influences how traders set prices on the market-place,” Andreas Mundt, President of the Federal Cartel Office told local German media, as per Reuters.
An Amazon spokeswoman refuted the allegations, claiming, the company’s “systems are designed to take action against price gouging.”
Why It Matters
Until 2013, Amazon required merchants not to offer their products on rival websites at lower prices than they were charging on its portal — a policy the company abandoned after Germany’s antitrust authorities intervened, Reuters noted.
German authorities reportedly halted an investigation into Amazon last year after the company reached a deal with them over terms of service applicable to third-party merchants.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In May, the retail giant asked the government in the United States to enact a law against price gouging during national emergencies. ” data-reactid=”31″>In May, the retail giant asked the government in the United States to enact a law against price gouging during national emergencies.
Amazon is also under an antitrust investigation in the European Union for allegedly violating competition rules. It faces a 10% penalty on its global annual revenues, if found guilty.
Price Action
Amazon shares closed nearly 0.4% lower at $3,148.02 on Friday, and were mostly unchanged in the after-hours session.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See more from Benzinga” data-reactid=”35″>See more from Benzinga
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”40″>© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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