What action did Germany's antitrust watchdog take against Amazon?

Germany's antitrust watchdog ordered Amazon to stop enforcing price controls on its German marketplace and seized €59 million ($70 million) from the company.

Why did the German antitrust watchdog fine Amazon?

The watchdog stated that Amazon's policy of controlling retailer prices on its marketplace violates rules governing the digital economy and fair competition.

Has Germany's antitrust watchdog seized tech profits before?

No, this is the first time Germany's antitrust watchdog has used its power to seize tech profits related to misconduct.

Home / Business and Economy / German Watchdog Seizes €59M from Amazon Over Pricing

German Watchdog Seizes €59M from Amazon Over Pricing

5 Feb

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Summary

Amazon must stop enforcing retailer price controls on German marketplace.
Germany's antitrust watchdog seized €59 million from Amazon.
The regulator stated Amazon's actions risk controlling price levels.

German Watchdog Seizes €59M from Amazon Over Pricing

Germany's Federal Cartel Office has mandated that Amazon cease enforcing price controls for retailers on its German online marketplace. The antitrust watchdog also confiscated €59 million ($70 million), an amount estimated to be Amazon's earnings from this practice.

The Cartel Office contends that Amazon's policy of de-listing or reducing the visibility of products with prices deemed too high contravenes digital economy regulations. These mechanisms are generally permissible only in exceptional circumstances, such as price gouging.

Andreas Mundt, the regulator's president, expressed concern that Amazon's actions could lead to price levels being dictated by the company's preferences, creating an uneven competitive landscape for external online retailers. He warned that such interference might prevent affected retailers from covering their costs, potentially forcing them out of the marketplace.