EU’s Latest Step in Regulating Big Companies: Probing Amazon’s Data Practices
In its ongoing efforts to address concerns regarding the power of large corporations, the European Union announced on Wednesday that it will be conducting a probe into Amazon’s use of data.
The investigation will focus on whether Amazon leverages data obtained from independent vendors to gain an unfair advantage in the market.
Recent actions taken by the EU signal a stricter stance against tech giants, with the probe on Amazon being another example of the antitrust measures being imposed on major companies. This development highlights the contrasting approaches of American and European policymakers toward regulating the influence of big tech firms.
Margrethe Vestager, the EU’s antitrust regulator, expressed intentions to closely examine Amazon’s operations as both a platform for third-party sellers and a retailer itself. This dual role grants Amazon access to valuable data on the activities of external vendors. In 2018, a significant portion of items sold on Amazon originated from third-party sellers. While Amazon collects data on transactions occurring on its platform, the extent to which this information is used to gain a competitive edge remains uncertain. The EU initiated the investigation last year, following indications that Amazon may be utilizing sensitive information related to marketplace sellers and their products to its advantage.
Amazon, in response, stated its commitment to fully cooperating with the European Commission and continuing to support businesses of all sizes in their growth endeavors.
