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European Commission confirms agreement with Amazon on use of third-party data – IT Professional – News

The European Commission confirms that it has signed an agreement with Amazon. From now on, the company will no longer be able to misuse sellers’ data for its own benefit, and sellers may no longer receive preferential treatment in the “buy box” and Prime service.

Since 2019, the European Commission has been investigating whether competing sellers on Amazon have been unfairly disadvantaged. Sellers using Amazon’s delivery services would also be more likely to have access to the so-called buy box and Prime service. It was before leaked by the Financial Times that an agreement had been reached between the Commission and the company. That’s how it is now confirmed by both parties.

Amazon is no longer allowed to use non-public seller data for its own benefit under the binding commitments. Also, your own products may no longer be favored by the buy box; a field on the right side of an Amazon product page that highlights a specific seller and allows shoppers to place their products directly into the digital shopping cart. Under the agreement, a second field must be added to display an alternative product with a different price or delivery option. Both offers must offer “the same shopping experience,” writes the EC.

Finally, Amazon can no longer discriminate when granting access to the Prime service. Prime sellers are also free to choose their own delivery service and therefore no longer have to go to Amazon alone. Again, the company cannot use third-party data for its logistics services.

Amazon’s buy box and Prime commitments are for seven years, instead of five as reported in the Financial Times article. The other commitments are still valid for five years. It is unknown if they will expire afterward or if other items will take their place. If Amazon exceeds its commitments, the Commission can impose a fine of 10 percent of the tech giant’s annual revenue or 5 percent of its daily revenue for each day of non-compliance.

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