(Update: Nov 25, 3:30 pm ET): Added a statement from an Amazon spokesperson about remaining compliant with the DMA.
What you need to know
- A report states the EU could have Amazon in its sights in 2025 for a potential investigation into its marketplace practices.
- The EU may look into whether or not Amazon is guilty of not pushing its products and the competition's equally.
- Amazon could face a fine worth up to 10% of its "global annual turnover."
Amazon might find itself in the hot seat again in the EU over a reported "breach in tech rules."
According to Reuters, the EU might seek out Amazon to investigate an apparent DMA ruleset breach in 2025. What the EU is reportedly looking to learn is whether Amazon has pushed its own products to consumers more than the competition's.
Murmurings about a potential investigation started in March, per a previous Reuters report. Back then, it was stated that the EU could look into the "ranking practices" Amazon conducts on its marketplace and whether that falls outside of the boundaries set forth by the EU.
An Amazon spokesperson said in March that the company has remained "compliant" with the set rules. The report states that Amazon "does not differentiate" between its products and those sold by third parties.
Now, the publication cites those close to the matter in saying that Amazon could face a fine worth up to 10% of its "global annual turnover."
Android Central reached out to Amazon about this potential investigation. An Amazon spokesperson offered the following statement: "Amazon is compliant with the Digital Markets Act and has engaged constructively with the European Commission on our plans since the designation of two of our services."
They add, "We continue to work hard every day to meet all of our customers’ high standards within Europe’s changing regulatory environment.”
In September 2023, the European Commission named its first six "gatekeepers" under the Digital Markets Act (DMA). Additionally, 22 services were deemed fit to fall under the "Core Platform" umbrella. In short, the DMA is the EU's ruleset for major companies to ensure that healthy competition lives on. One company shouldn't give itself an unfair advantage over another that's trying to make good on its platform.
Amazon's Marketplace fell within the EU's "intermediation" box for the DMA. As Reuters also reiterated, this was designed to ensure Amazon — like many others — couldn't promote themselves above others in the name of profit.
This also isn't the first time Amazon has fallen in the hot seat with the EU or even the FTC, for that matter. The company was forced to provide a clear process for consumers to cancel its Prime membership in the EU. The old process was dubbed "manipulative" as consumers found it difficult to navigate the process, thus incurring another monthly charge. After complying, Amazon rolled out a simpler, two-step process to exit the membership.
A similar investigation took place in the U.S. in 2023 as the FTC said Amazon conducted "dark digital practices."
