Amazon (AMZN.US) stock fell over 3.0 % after the European Commission unveiled formal antitrust charges against the tech giant over its dual role as a marketplace for merchants and as a retailer competing to sell the same products.
The regulator was investigating how Amazon collects data on independent sellers on its platform. It says that Amazon uses that sensitive information, which shows what is proving popular or not, to better target its own products. "The use of these data allows Amazon to focus on the sale of the best-selling products and it marginalises third-party sellers and caps their ability to grow," European Competition Commissioner Vestager told a news conference. Vestager also said that regulators had to ensure that dual-role platforms with market power, such as Amazon, did not distort competition.
Company disagreed with the allegations. "Amazon represents less than 1% of the global retail market, and there are larger retailers in every country in which we operate," the company said. The Commission said that its preliminary view is that Amazon has breached EU antitrust rules, but that its investigation must be completed before any penalties are imposed. The dispute may not be resolved until next year. Amazon is facing a fine of 10% of its global turnover.
Also regulators also opened a second investigation which is to determine whether Amazon artificially favors its own retail offers or those of third-party sellers who use its logistics and delivery services.
Company disagreed with the allegations. "Amazon represents less than 1% of the global retail market, and there are larger retailers in every country in which we operate," the company said. The Commission said that its preliminary view is that Amazon has breached EU antitrust rules, but that its investigation must be completed before any penalties are imposed. The dispute may not be resolved until next year. Amazon is facing a fine of 10% of its global turnover.
Also regulators also opened a second investigation which is to determine whether Amazon artificially favors its own retail offers or those of third-party sellers who use its logistics and delivery services.
Amazon (AMZN.US) stock launched today's session lower and price is currently approaching long-term upward trendline. Should a break below occur then downward move may accelerate. Local support is located at $2850.47 level. Source: xStation5
US OPEN: Trump ends ceasefire, Wall Street sinks in red
Iran: A perpetual conflict, but not perpetual declines
Will the AI Bull Market Return to Wall Street? Meta Platforms' New Business Could Be the Catalyst
Alibaba shares surge 10% 🔼 Is capital coming back to China?
