The European Commission is readying charges against Amazon for abusing third-party seller...

[nanoguy]

In a nutshell: The European Commission is preparing its conclusions in the Amazon antitrust case, which could turn ugly for the retail giant, who faces a fine of up to ten percent of its 2019 global revenue for using third-party seller data to guide its own product strategies on the Amazon Marketplace.

The EU crusade against US big tech continues, with plans to file antitrust charges against Amazon for controversial business practices that have riled up third-party sellers who have struggled to compete with the retail giant on its online marketplace. This is the culmination of a two year-long antitrust probe that's been investigating how Amazon may have abused its online retail dominance to squash smaller rivals. A major concern has been Amazon's misuse of data collected from third-party sellers to compete against them on the Marketplace.

The person behind the effort is Margrethe Vestager, the famous European Commissioner who is now in charge of digital policy and antitrust enforcement. She's taken a keen interest in US tech giants and their penchant for using their dominant power in certain markets to capture new ones, as well as stopping potential rivals in their tracks through strategic acquisitions and tuning of search algorithms.

Several Amazon employees told the Wall Street Journal that the company had been using what should be proprietary seller data to aid in the design and pricing strategies for its own white-label products.

An official "statement of objections" could come as early as this month, although it's likely that a final decision on whether Amazon broke EU antitrust law is still a year out.

When that happens, Amazon could be fined for up to 10 percent of its annual global turnover, or approximately $28 billion. That could be the mirrored in the US, as lawmakers are asking the company for clarifications on its data policies and calling for a criminal antitrust probe since Amazon had previously stated it doesn't use third-party seller data to gain an unfair advantage.

Vestager is only getting started, with Google already fined $9 billion in three separate probes, and other companies like Facebook and Broadcom being closely investigated for anticompetitive behavior and data collection practices.

Permalink to story.

https://www.techspot.com/news/85598-european-commission-readying-charges-against-amazon-abusing-third.html

 

[Bullwinkle M]

And what happens if they all start refusing to pay?

Are you going to ban Amazon / Google / Microsoft / Facebook and the rest from the EU?

I'd like to see that

No Really, I'd like to see that!

Let's ban them from the U.S. market as well
Seriously!

I want to see it!

 

[Wendig0]

Cases like this are a joke... It's important to keep companies in line by making sure they're abiding by the law, but the government's bringing these charges don't really care about that at all. All they see are dollar (or Euro in this case) signs. They don't give a crap about the sellers that were exploited, because the sellers won't receive a dime of these fines. The fines go straight to the government to waste as they see fit.

 

[psycros]

If the sellers or customers who were impacted don't receive the majority of the payout then this is just one criminal shaking down another.

Cases like this are a joke... It's important to keep companies in line by making sure they're abiding by the law, but the government's bringing these charges don't really care about that at all. All they see are dollar (or Euro in this case) signs. They don't give a crap about the sellers that were exploited, because the sellers won't receive a dime of these fines. The fines go straight to the government to waste as they see fit.

Indeed. If the sellers or customers who were impacted don't receive the majority of the payout then this is just one criminal shaking down another. Frankly, I have no idea why people are still addicted to Amazon. Their never the cheapest option and their site just gets worse and worse. Half their market is illegal knock-offs and their search function is the joke of the industry.

 

[Evernessince]

"The EU crusade against US big tech continues"

correction

"The EU crusade against illegal anti-consumer practices"

Just because America has a complete lack of any consumer rights doesn't mean other countries have to follow suite.

 

[PurpleYoda]

Frankly, I have no idea why people are still addicted to Amazon. Their never the cheapest option and their site just gets worse and worse. Half their market is illegal knock-offs and their search function is the joke of the industry.

One word - convenience. When you’re Prime member the free next day shipping, free returns and huge return window with pretty much no questions ask policy cannot be beaten.. That’s not to say I never used other online sellers over Amazon but if I get a chance, and the price difference is acceptable up to 5% margin, I don’t think twice about it.

 

[Eldritch]

"The EU crusade against US big tech continues"

correction

"The EU crusade against illegal anti-consumer practices"

Just because America has a complete lack of any consumer rights doesn't mean other countries have to follow suite.

No, we all should give unconditional praise to corporates as they progressively destroy micro, small, medium and even large businesses.
The disregard of their own rights and those of large section of society for benefit of 0.01% is both painful and hilarious.
I know that most likely it won't go to sellers but at least it is a deterrent from indulging in these type of practices.

 

[Unilythe]

"The EU crusade against US big tech continues"

correction

"The EU crusade against illegal anti-consumer practices"

Just because America has a complete lack of any consumer rights doesn't mean other countries have to follow suite.

Yeah, it's very unprofessional of the author to let their personal political view shine through on a supposed objective tech website.

Especially when it's literally just EU rules and laws that these companies are objectively breaking. There's nothing more to it.

 

[Uncle Al]

It all builds towards a bigger case for the anti-trust boys. Amazon has abused it's customers by allowing 3rd party sellers to steal customers money through spotty products and a refusal to grant refunds .... and Amazon won't back up the customers rights as well. They refuse to allow you to write negative reviews that point the finger at Amazon too. They have their own product line, their own order taking, shipping which makes them a simple monopoly, which is more than enough for the government to step in and break them up just like the first US v. Standard Oil.

 

[Porkous]

Is like a hegemony. The harder Amazon is trying to resist, the stronger this entity grows. Good for them, I guess. It only means they either have the power, the right, or the brains to do so. I don't think Amazon could've not avoided this, is black and white on paper, or either they are being sloppy because of too much power.


This is interesting.
"Any fine paid by Google—and penalties paid by other companies that run afoul of EU authorities—goes straight into the EU budget. With a total budget of around €150 billion in 2016, the Google fine would equal around 1.6% of overall revenues."

So a part of these fines go to countries like Poland, or Germany for funding different stuff as railroad tracks, bicycles, etc. Well, the more the merrier, thanks to these companies

https://ec.europa.eu/budget/graphs/revenue_expediture.html

 

[Squid Surprise]

They have their own product line, their own order taking, shipping which makes them a simple monopoly, which is more than enough for the government to step in and break them up just like the first US v. Standard Oil.

Yeah... and how did breaking up S.O. work out? They certainly didn’t continue to monopolize the resource or collude in price fixing once they’d been split up...

 

[kmo911]

We dont collect info WRONG. we must now run vpn and get a user id on every site that changes ever 15 min. we are tiered of getting used. SAY NO TO GETTING MISSUSED. OR JUST GO TO old letter writing.or mc gyver sos ballons flags.

 

[p51d007]

Here's how I buy things. I find something I want. I search the LOCAL places first. If I find what I want, I typically buy it. If I do or don't, I will also search online to see how the pricing is. If it is VERY close, I will always choose the local retailer.
If the price is WAY off, for the exact same product, most retailers will bargain with you or match the price.
Now, when it comes to my camera equipment, I ALWAYS buy local. I'm lucky to have a dedicated camera shop that has been in my city since the late 1800's. Although the owner sold it to a larger company a few years back, they retained most of the staff. I know them, they know me, and it's easier if there is a problem, to do business with a LOCAL vendor, instead of online to work out a return, or problem.

 

[Youps]

And what happens if they all start refusing to pay?

Are you going to ban Amazon / Google / Microsoft / Facebook and the rest from the EU?

I'd like to see that

No Really, I'd like to see that!

Let's ban them from the U.S. market as well
Seriously!

I want to see it!

And what happens if they all start refusing to pay?

Are you going to ban Amazon / Google / Microsoft / Facebook and the rest from the EU?

I'd like to see that

No Really, I'd like to see that!

Let's ban them from the U.S. market as well
Seriously!

I want to see it!

And what happens if they all start refusing to pay?

Are you going to ban Amazon / Google / Microsoft / Facebook and the rest from the EU?

I'd like to see that

No Really, I'd like to see that!

Let's ban them from the U.S. market as well
Seriously!

I want to see it!

And what happens if they all start refusing to pay?

Are you going to ban Amazon / Google / Microsoft / Facebook and the rest from the EU?

I'd like to see that

No Really, I'd like to see that!

Let's ban them from the U.S. market as well
Seriously!

I want to see it!

get some Prozac, come down. They will pay fine anyway they can’t just refuse it.
EU is land of freedom and just. Your mega corporations completely ruined your nation. We won’t let it happen with ours. Bye

 

[Squid Surprise]

get some Prozac, come down. They will pay fine anyway they can’t just refuse it.
EU is land of freedom and just. Your mega corporations completely ruined your nation. We won’t let it happen with ours. Bye

From the continent that brought you 2 world wars... thanks... but no thanks...

 

[williboi]

Aaaaand this is why I buy from Newegg and my local walmart. Anyone seen that Amazon kept screwing up orders of Samsung SSDs and refusing returns or refunds? Thank god I got all my PC hardware from Newegg.

 

[Wendig0]

Aaaaand this is why I buy from Newegg and my local walmart. Anyone seen that Amazon kept screwing up orders of Samsung SSDs and refusing returns or refunds? Thank god I got all my PC hardware from Newegg.

I've never had an issue returning items to Amazon, but I haven't ordered any Samsung SSD's lately either.