European Commission To Probe Amazon Under Digital Markets Act Norms

European Commission To Probe Amazon Under Digital Markets Act Norms

The regulator is reigning in the power of the Big Tech

The European Commission could investigate Amazon under the Digital Markets Act (DMA) for favoring its own brand products online. If found guilty, it could face a fine of up to 10 percent of its global annual turnover

The decision to investigate rests on the incoming European Union (EU) antitrust chief Teresa Ribera. The Spanish citizen will assume the post in December, replacing Margrethe Vestager.

However, Amazon stated it complied with the DMA norms and engaged constructively with the Commission on its plans since the designation of two of its services as important gateways between businesses and consumers.

The DMA, effective last year, prohibits Amazon and six other Big Tech companies from preferential treatment to their products and services on their platforms.

Earlier, the antitrust enforcer said it was gathering information on Amazon's treatment of its brand products on the Amazon Store.

However, in its compliance report in March, Amazon stated that its ranking models did not differentiate whether the product was sold by Amazon retailer or seller or if it was its own or a third-party product.

Meanwhile, Apple, Alphabet's Google and Meta Platforms are being investigated under the DMA norms.