Amazon is under investigation by the UK’s Competition and Markets Authority (CMA) over claims some of its practises may violate competition laws and result in worse deals for its customers.
The ecommerce firm is being accused of distorting competition by giving its own retail business and sellers that use its services and advantage over third-party sellers on the Amazon UK marketplace.
The CMA will look at how the company uses third-party seller data and how it decides the criteria software selling under the Prime label, Sky News reported.
It will also focus on how Amazon selects the preferred choice in the “Buy Box,” which provides shoppers with a one-click option to purchase the item now or “Add to basket” from a specific seller.
“Millions of people across the UK rely on Amazon’s services for fast delivery of all types of products at the click of a button,” CMA general counsel Sarah Cardell told Sky News.
“This is an important area so it’s right that we carefully investigate whether Amazon is using third-party data to give an unfair boost to its own retail business and whether it favours sellers who use its logistics and delivery services – both of which could weaken competition.
“Thousands of UK businesses use Amazon to sell their products and it is important they are able to operate in a competitive market.