Berlin: Germany’s competition watchdog has banned Amazon from using price control practices on third party sellers operating on its marketplace in the country, saying the measures unfairly restrict competition.
The Federal Cartel Office, known as the Bundeskartellamt, said Amazon used mechanisms that influenced how independent sellers set prices for their products. These included systems that could penalise sellers by reducing visibility or sales opportunities if their prices were considered too high.
The regulator said such practices are problematic because Amazon not only runs the online marketplace but also competes directly with those sellers by offering its own products. This, it said, gives Amazon an unfair advantage and limits free pricing in the market.
Along with the ban, the cartel office said Amazon must repay around 59 million euros that it believes were gained through these practices. The order was issued using expanded powers under Germany’s updated competition law, which is aimed at stronger oversight of large digital companies.
Amazon said it disagrees with the decision and plans to appeal. The company argued that its pricing rules are designed to protect customers from inflated prices and to ensure a good shopping experience.
The watchdog said the decision could have wider implications, as it is also examining similar pricing practices used by other online platforms. For sellers in Germany, the ruling could give greater freedom to set prices without fear of penalties from the platform.
The case adds to growing scrutiny of big technology companies across Europe, where regulators are increasingly moving to curb the market power of dominant digital platforms.