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Mild antitrust penalty for advertising business in sight

by Rachel Kim – Technology Editor

German Antitrust Authority Signals Mild Penalty for⁢ AmazonAdvertising​ Business

Berlin, Germany – September 1, 2025germany’s Federal Cartel Office (bundeskartellamt) has ⁣indicated it will likely impose a relatively minor penalty on Amazon regarding its advertising business ‌practices, following a year-long‌ examination. The agency determined Amazon holds a dominant position in the German market‍ for advertising services, particularly for ​merchants selling on its marketplace, but stopped short of issuing a sweeping prohibition​ or substantial fine.

The investigation, launched in September 2024, focused on concerns that Amazon leverages data collected from third-party sellers to unfairly compete wiht them in its advertising services. The Bundeskartellamt found⁣ Amazon​ does indeed benefit from this data asymmetry,giving it an advantage in offering targeted advertising. ⁣however, the authority concluded the current practices do not yet constitute an abuse of its dominant market position that warrants a severe ‌penalty. The agency is pursuing commitments from Amazon to improve clarity and fairness for sellers utilizing its advertising ⁤platform.

This⁢ case arrives amid increasing global scrutiny of ‍the business practices of major technology companies,particularly concerning the intersection of marketplace operations and advertising.⁣ The Bundeskartellamt’s decision signals a cautious approach, prioritizing adjustments to Amazon’s practices over a possibly lengthy and costly legal battle. Affected parties include the ​thousands of third-party sellers on Amazon.de who rely⁢ on the platform’s advertising tools to reach customers. The agency expects to finalize its commitments with Amazon in the coming weeks, after a period for public comment.

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