Is there a chance for the "account blocking trend" to reverse? Amazon was ordered to unconditionally unblock seller accounts

Is there a chance for the "account blocking trend" to reverse? Amazon was ordered to unconditionally unblock seller accounts

▲ Video account attention: cross-border navigation


Amazon’s account blocking trend has been going on for more than a few months, and the sellers are most concerned about the funds and inventory issues of the blocked accounts.
 
A few days ago, a seller whose account was blocked said that there has been no substantial progress in the Amazon incident and the company is still coordinating and appealing with the Amazon platform. Previously, many sellers who were blocked also stated in the announcement that they would communicate and appeal with Amazon, but after several months, there has been no new progress.
 
The big sellers have no hope of appealing, and the small sellers are also discouraged. Are they just going to watch their funds being frozen and their inventory being destroyed?
 
Just when the sellers were feeling frustrated, the following case of a German seller winning the lawsuit against Amazon and successfully unblocking his account seemed to bring a glimmer of hope to the account blocking trend.
 


Amazon banned accounts for violating EU regulations


It is learned that recently, the account of mi.topharm, a local corporate seller from Germany, was blocked by Amazon. Not only did it lose its important sales channel, but the goods stored in Amazon warehouses and not yet sold were also at risk of being destroyed.
Cross-border navigation Amazon was sanctioned by the court, and the appeal seller's account was immediately unblocked! #Amazon##Cross-border headlines#Cross-border e-commerce video account
Subsequently, the seller's attorney Simon Spangler appealed to the court regarding Amazon's account suspension. Spangler pointed out that Amazon suspended the seller's account on the grounds of violating the platform's terms of use, but did not further explain the reason. When asked to provide detailed reasons for the suspension, Amazon did not give a corresponding response.
 
Spangler said that due to Amazon's market position in German e-commerce, the platform is an indispensable sales channel for many companies and account blocking could threaten the company's survival.
 
 
The court pointed out that Amazon's general reason for blocking accounts on the basis of suspected violations of its terms of use was inconsistent with the EU Platform to Business (P2B) Regulation.
 
Based on this, the Hanover Regional Court ruled that Amazon’s behavior constituted an abuse of its dominant market position and made the following ruling:
 

1. The court ordered Amazon to unconditionally unblock the seller’s frozen account and not to destroy the seller’s remaining inventory.


2. After Amazon unblocks the company, it must still guarantee the company’s right to continue to appeal on the platform.


It is understood that the Hanover Regional Court's ruling on Amazon is the first time that a German local court has combined the P2B regulations with the Antitrust Law to make a ruling on an online platform. Relevant professionals also suggested formulating clear regulatory guidelines for the platform economy.
 
In fact, the key to the German seller's victory lies in this EU regulation, and the basis for the court's decision is also the EU P2B regulation. So how does this regulation protect the rights of sellers?
 


The winning case provides ideas for sellers who are banned


AZM123 learned that the EU P2B Regulation came into effect on July 12, 2020, stipulating relevant matters when online platforms restrict, suspend and terminate their business relationships with platform merchants , ensuring that platform merchants and stores receive fairer treatment. The regulation applies to online platforms such as Amazon, eBay, Google Shopping, Microsoft Store, Apple App Store, and social media platforms such as Facebook or Instagram.
 
In order to prevent unfair business practices by app stores, search engines, e-commerce websites, and hotel booking websites, the regulations also stipulate some restrictions and practices on platforms:
 

1. If an account is blocked, the platform must provide detailed reasons.


2. The platform can no longer suspend or terminate the seller’s account without clear reasons, and should give the seller an opportunity to appeal.


3. When changing terms and conditions, at least 15 days’ notice is required to allow sellers to adapt.


The Regulation also mentioned that in addition to the P2B Regulation as an antitrust regulatory target, e-commerce platforms within the EU must establish a special complaint system to help more e-commerce sellers safeguard their rights.
 
After seeing the above case, many Chinese sellers also thought of the current domestic account blocking incident. Although the two situations are different, many sellers have questions in their minds:
 
1. Is Amazon’s direct ban on sellers legal and compliant?
2. Does Amazon have the right to freeze sellers’ funds and inventory?
3. Can Chinese sellers also appeal against Amazon?
 
Spangler pointed out that this judgment will have a significant impact on Amazon's behavior towards sellers on its platform. It will also provide ideas for domestic Amazon sellers who have recently been caught in the dilemma of "account blocking", bringing a glimmer of hope for reversing the blocking situation.
 
Do you think the above cases can bring a turnaround to this wave of account bans? Feel free to share your views in the comments section~



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