Home » Amazon News • UK Business News • US business news » Amazon proposes marketplace changes after pressure from UK regulators

Amazon proposes marketplace changes after pressure from UK regulators

By Nithya Bose in Amazon News, posted July 27, 2023

Amazon has proposed changes to how it treats third-party sellers on its Marketplace platform and utilizes their data.

The move is in response to concerns raised by the UK's competition regulator, the Competition and Markets Authority (CMA).

Last year, the CMA launched a probe over whether Amazon was giving preferential treatment to its brands and those using its logistics services.

This potentially grants them an unfair advantage over other sellers in the Marketplace.

Amazon's new commitments aim to ensure third-party sellers have an equal opportunity to prominently display their product offers to customers.

To address data-related concerns, the tech giant has pledged not to use sellers' data to gain an "unfair advantage."

Amazon plans to allow third-party businesses using the Marketplace to directly negotiate rates with independent providers of Prime delivery services to secure potentially cheaper deals.

The company will appoint an independent trustee to oversee its compliance with these commitments.

While the CMA examines the proposed modifications, its preliminary view is that the move “addresses its competition concerns”.

Ann Pope, senior director for enforcement at the CMA, said: “Amazon’s commitments to the CMA will help ensure that third-party sellers on Amazon Marketplace can compete on a level playing field against Amazon’s own retail business and, ultimately, mean that customers in the UK get a better deal.

Need Career Advice? Get employment skills advice at all levels of your career

“The CMA took this action after it heard concerns that Amazon was using its strength in the market to gain an advantage over thousands of businesses which use Amazon Marketplace to reach customers.

“We are now consulting on these commitments which we believe, at this stage, will address our concerns.”

An Amazon spokesman said: “While we disagree with the CMA’s preliminary concerns, we have engaged constructively with them to address the matters they have raised and to preserve our ability to serve UK customers and the more than 100,000 UK-based small and medium-sized businesses selling through our UK store.

“We are extremely proud of the work we’ve done to support our sellers’ success over the past two decades.”

Follow us on YouTube, Twitter, LinkedIn, and Facebook.