Amazon Decided To Make Big Business Changes In EU Settlement
- With the year coming to an end, Amazon has reportedly agreed to alter its business methods significantly as part of a settlement with European Union regulators.
- This was done to resolve regulatory inquiries that showed the e-commerce giant gave itself a biased edge over its competitors.
- “Amazon has decided to make substantial changes to its business operations,” European Union officials announced Tuesday.
- According to the EU's executive Commission, Amazon has pledged to give competing sellers' products an equal chance to appear in the "buy box," a notable area of its marketplace that promotes sales.
- By reaching a deal, Amazon is able to avoid a legal dispute with the E.U.'s top antitrust agency that could have resulted in significant penalties worth up to 10% of its annual global revenue.
- At a news conference in Brussels, EU competition commissioner Margrethe Vestager said, "Today's judgment outlines the standards that Amazon will need to play by in the future instead of Amazon deciding these norms for all on its platform."
- Also, reporters say, new regulations will give competing independent merchants, carriers, and European customers more options and choices.
- The settlement was reached after this e-commerce giant made concessions in July to end two EU antitrust investigations. It solely relates to Amazon's business operations in Europe.
- Under the agreement made public on Tuesday, Amazon also changed those original suggestions.
The understanding imprints one more development by EU specialists as they brace down on the force of Large Tech organizations and comes simply a day after the Commission blamed Facebook parent Meta for misshaping rivalry in the grouped promotions business.
The understanding just applies to Amazon's strategic approaches in Europe and will keep going for quite some time. Amazon should roll out the guaranteed improvements by June.
"We are satisfied that we have tended to the European Commission's interests and settled these issues," Amazon said in a pre-arranged proclamation, adding that it can't help contradicting a portion of the Commission's more thoughtful decisions.