Amazon “double role” puts a spotlight on disadvantages for sellers

By Sasha Fedorenko December 3, 2018 - 10:20 am

Amazon’s “double role” as a leading marketplace and a seller platform have put a spotlight on factors that disadvantageous for their merchants, says an investigation.

The announcement comes a marketplace are under an inquiry by German’s competition audit, Federal Cartel Office to scrutinise how Amazon balances their dual duty, and whether there is an abuse of power on sellers. The investigation will set to examine inquiry and blocking their accounts, as reported by Tamebay.

Amazon functions as a kind of gatekeeper for customers Its double role as the largest retailer and the largest marketplace has the potential to hinder other sellers on its platform.”

-Andreas Mundt, head of the Federal Cartel Office (Bundeskartellamt)

The inquiry has raised concerns for other, retail audits to step in. The Competition and Markets Authority (CMA), UK’s non-governmental competition inspector have said that they keep a close watch on Amazon’s enquiry and consult with other national watchdogs.

Promoting competition in digital markets is one of the CMA’s priorities. Technology has transformed some market and brought with it benefits such as increased choice and convenience, but it also gives rise to some risks to competition. We engage with other national authorities and will note the outcome of the German investigation.”
-The Competition and Markets Authority

These news come as PayPayl’s acquisition of iZettle have come under an investigation this week by CMA. The merger deal has raised concerns on the imbalance of prices and quality of services for small to medium enterprises. As it appears leading retail businesses are coming under fire for their business activities that might not look right in the eyes of regulators, and have possibly helped companies to achieve results faster if it wasn’t for those ‘activities’. In fact, Amazon’s investigation was triggered as a result of their sellers’ complaints to Federal Cartel Office. It remains to be seen in full detail how Amazon’s “double role” has been impacting their merchants’ and whether the marketplace is pushing their own agenda at the expense of sellers by taking precedence over their own business.

  • Laura
    11 months ago

    Mmmmm hello there this is about two decades too late and if I’m honest this is a load of rubbish! Google algorithm and then think about every large organisation that uses there size, cash, resources and data to make themselves more profitably.

  • FRED
    11 months ago

    Amazon are unlikely to be very worried. They managed to inveigle threir way into becoming the largedt eddentially unopposed monopoly on the planet. As far as they are concerned dirty tactics and riding rough-shod over laws pays huge dividends.

    • FRED
      11 months ago

      And couldn’t agree more with the previous comment that its 2 decades too late.

  • 11 months ago

    yes if you want to beat Amazon you need to be more fraudulent than them. Just look at the VAT fraud it creates, unsafe products and very little taxes paid in countries it sells in

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