Amazon could soon face a EU investigation over allegations it prioritizes its own brand products on its online marketplace.
Sources say EU antitrust regulators are laying the groundwork for a formal case under the Digital Markets Act (DMA), which aims to curtail the dominance of Big Tech.
If found in violation of the DMA, Amazon risks a fine of up to 10 percent of its global annual turnover—a substantial financial blow for the online retail giant.
The decision to proceed with the investigation will fall to Teresa Ribera, the incoming EU antitrust chief, who replaces Margrethe Vestager next month.
Ribera is expected to determine the investigation’s course within the coming months.
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Amazon’s Defense: Compliance and Cooperation
In response to the allegations, Amazon maintains its compliance with the DMA.
The company says it has actively worked with EU regulators following the designation of two Amazon services as “important gateways” under the DMA rules.
In a March compliance report, Amazon stated its product ranking models do not distinguish between its own products and third-party offerings.
Despite these assurances, European regulators continue to scrutinize Amazon’s practices.
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Market Impact and Regulatory Scope
The DMA, introduced last year, prohibits major tech companies from favoring their own products on their platforms, among other restrictions.
Alongside Amazon, other tech giants such as Apple, Google, and Meta are also facing EU investigations under the DMA.
Following the news, Amazon’s shares dropped by 3 percent, settling at $196.91.
Broader Implications for Big Tech
The DMA represents a significant regulatory effort to rebalance the digital marketplace.
The European Commission, which enforces the DMA, confirmed in March it was gathering evidence regarding Amazon’s treatment of its own brand products.
However, the Commission declined to comment further.
Ribera’s decisions in these cases will set the tone for Big Tech’s compliance with EU regulations, potentially reshaping how these companies operate globally.
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The Road Ahead for Amazon
While Amazon asserts its adherence to the DMA, the EU’s potential investigation signals heightened scrutiny of Big Tech’s practices.
As regulatory pressure builds, Amazon—and its peers—must navigate a complex landscape of compliance, competition, and evolving legislation.
