Stocks

Google Ad

The European Union is probing into Amazon using data from smaller sellers as an unfair advantage in its marketplace over them. The investigation is in it's "early days" Margrethe Vestager, the EU commissioner for competition, said and that a formal investigation has not been launched.

EU Competition Vestager

EU Commissioner for Competition Margrethe Vestager.  Image by Michael Reynolds

Ms Vestager said “The question here is about the data,” at the press conference.

Because if you, as Amazon, get the data from the smaller merchants that you host — which can be, of course, completely legitimate because you can improve your service to these smaller merchants — well do you then also use this data to do your own calculations of what is the new big thing?”“

Data is a big issue for the company. Amazon is investigating allegations that some of its staff sold confidential customer data to third party companies particularly in China.

European regulators last year settled an investigation with Amazon over contracts with e-book publishers. Amazon was ordered by the EU to pay $295 million in back taxes to Luxembourg last year. Earlier this year, the EU fined Google $5 billion for forcing manufacturers to pre-install the company’s apps on Android devices.

$AMZN did not immediately respond to a request for comment. Vestager added. “We have no conclusions. We haven’t formally opened a case but we are trying to make sure that we get the full picture.”

Amazon Latest Earnings Report

AMZN Earnings Q2 18

Read More: Amazon Record Profit But Misses on Revenue

One to keep an eye on giving the sheer weight of $AMZN on the US indices.

From The TradersCommunity News Desk

Log in to comment
Discuss this article in the forums (0 replies).