Last Wednesday, the European Commission revealed that they would investigate Amazon to conclude if this company made some data breaches in order to gain an advantage over the competition.
Margrethe Vestanger, Competition Commissioner for the E.U., decided to open an investigation to determine if Amazon uses data sold on the company’s market to their benefit. She said that the investigation would focus on Amazon’s role as both a merchant and a marketplace. The regulator claimed that the preliminary check shows Amazon might be using delicate information about transactions and products of marketplace vendors.
The European Commission started inquiring sellers about the way Amazon gathered their data during the previous year. If they affirm that Amazon violated competition rules, the company could face a fine up to 10% of their annual income.
Amazon stated that the European Commission will have their full cooperation and that the company will continue to support and help grow businesses of all sizes. They are facing close examination and surveillance around the world.
On Wednesday, the antitrust monitor of Germany stated that they made a deal with Amazon to re-examine the terms of their service for third-party vendors. Last Tuesday, in a House Judiciary, subcommittee hearing executive of the company said that Amazon doesn’t use third-party merchant’s data to decide on the creation of new products.
Before this, the European Commission made the antitrust inquiry of Alphabet’s Google, which was punished with $9.5 billion in total since 2017. Shares of the Amazon transaction went flat just hours after the announcement of the E.U.