Amazon scraps laws preventing sellers offering items cheaper on rival sites

Amazon has scrapped a clause which prevents third party sellers from listing their items cheaper elsewhere online amid growing scrutiny.

Amid calls across the US for Amazon to be investigated under anti-trust laws, Amazon has dropped the so called “most favoured nation” clauses, which previously sought to prevent sellers offering their items cheaper on rivals like Ebay or Alibaba.

The controversial clauses were scrapped in Europe back in 2013 after the UK and Germany launched an investigation into the policy, and is now also being scrapped in the US where Amazon receives half of its retail income.

READ MORE: Amazon abruptly cancels orders from thousands of wholesalers

This follows US Senator Richard Blumenthal’s calls last December to the Justice Department and the Federal Trade Commission to launch a similar investigation into what he described as “anti-competitive practices”.

“Amazon’s wise and welcome decision comes only after aggressive advocacy and attention that compelled Amazon to abandon its abusive contract clause,” Blumenthal said yesterday.

This comes amid wider criticism of big technology and their increasing dominance in the US, with the presidential hopeful Elizabeth Warren announcing plans to break up Amazon, Google and Facebook if she is elected in 2020.

She added that she would introduce legislation preventing Amazon from operating a marketplace and participating in that marketplace.

Amazon’s marketplace now accounts for over half of all the items sold by the tech giant.

Click here to sign up to Charged‘s free daily email newsletter

1 Comment. Leave new

Avatar
Martin Evans
March 12, 2019 9:39 am

Probably about time too. From my observations and suspicions about Amazon’s tactics in the UK (which include selling chinese calcs sent direct from PRC to UK customers, but without paying UK VAT…with the apparent conivance of Amazon) as well as apparent price manipulation which works against third party sellers on Amazon Marketplace, they are a typical greedy USA company like many others that have a “win at all costs” mentality which pays little regard to the welfare of their staff and the ethics (do they know what that word means ?) and morality of business. …and just in case you think that I’m on the far left, forget it. I’m more aligned with conservative thought, but having regard to the importance of honesty and integrity in business.

Reply

Leave a Reply

Your email address will not be published. Required fields are marked *