Germany: Amazon investigated for anti-competitive practices
Amazon is currently under investigation in Germany for possible anti-competitive practices. This is on the basis of a new local law that was passed in January. It strengthens the powers of action against the digital giants.
“The federal anti-cartel office has opened an investigation against Amazon on the basis of the new rules applying to large digital companies”, announced the German competition policeman in a press release. The authorities indicate that they want to determine whether Amazon has a primary importance in the markets, allowing it to have potential anti-competitive practices.
The German text allows investigators to take immediate prohibition measures, once it is proven that a company has a disproportionate place in several markets. This law mainly targets the digital giants, accused of taking advantage of a virtual monopoly position in their activities.
Previously, competition officials had to prove the existence of an abuse of a dominant position, before taking action. “This could apply to Amazon, with its online sales platform, and many other offers, especially digital”, said Andreas Mundt, chairman of the German Anti-Cartel Office. Some Amazon practices like “The establishment of a barrier to entry” or “Self-referencing of its own services” could be banned, said the institution.
