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Action Investments Limited – Breaking News - Amazon investigation over listings practices in UK
Amazon is under investigation in the UK over concerns that the company is giving an unfair advantage to certain sellers on its marketplace.
The investigation will center on how Amazon decides which products are given preferential listing spots.
Amazon said it believed it had always worked hard to help small businesses selling on Amazon to succeed,
This investigation by the Competition and Markets Authority (CMA) follows a similar probe launched by the European Commission in May.
The online retail giant not only hosts the marketplace where independent businesses can advertise their products, but it also sells its own products there too.
According the CMA, Amazon may be giving preference to its own retail business and disadvantaging third-party sellers.
The regulator also said that for a fee, Amazon offers services to these independent businesses - including storage, packaging, and delivery - and may be giving an unfair advantage to the sellers that purchase these services.
If the CMA decides, after concluding its investigation, that Amazon is guilty, then it has the power to impose a financial penalty or direct the company to change its practices.
Sarah Cardell, General Counsel at the CMA, said: "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."
"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 favors sellers who use its logistics and delivery services - both of which could weaken competition,"
Thousands of UK businesses use Amazon to sell their products, she added.
"Any loss of competition is a loss to consumers and could lead to them paying more for products, being offered lower quality items or having less choice."
A spokesperson for Amazon said: "We will work closely with the CMA during their investigation, although we believe we've always worked hard to help small businesses selling on Amazon to succeed, which is in both their and our best interests."
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