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.

Amazon, facing increased global scrutiny over its business practices, has the option to appeal this ruling. This action is significant as it is the first instance of Germany's antitrust body utilizing its power to seize tech profits stemming from misconduct, a power granted through a 2023 legislative update. The regulator indicated that it may continue to confiscate funds if violations persist.