To pay 28 billion? Amazon is caught in monopoly storm again! EU and US take action one after another!

This is not the first time that Amazon has been investigated for business purposes. As the world’s largest e-commerce platform, Amazon is often caught up in scandals such as monopoly, abuse of third-party data, and abuse of product search rankings!

This time, Amazon has been investigated by the European Union and the United States one after another!

On June 12, according to cnBeta, the European Union will file formal antitrust charges against Amazon for its use of third-party sellers' data.

It is reported that the accusation may be filed as early as next week, but it is expected that it will take another year after the accusation is filed before the Commission can make a formal decision on whether Amazon has violated the law. At the same time, Amazon can also challenge the decision in court, but it may still be fined up to 10% of its global annual revenue in the end.

If estimated based on Amazon's 2019 turnover, the fine will reach $28 billion! Amazon declined to comment on the incident.

The EU's investigation into Amazon dates back nearly two years. In September 2018, EU Competition Commissioner Margrethe Vestager said the EU was investigating how Amazon used third-party sellers' data.

In addition to the European Union, the United States has also launched charges against Amazon!

June 13th news, according to the US-Hong Kong Telecom, California regulators are reviewing Amazon's business practices as part of the state's investigation into technology giants.

The review is reportedly focused on how Amazon treats third-party sellers on its platform and whether there is monopoly behavior. The review comes as Amazon faces scrutiny from Washington, D.C. and overseas.

A spokesman for California Attorney General Xavier Becerra declined to comment. When asked about Amazon’s business practices in December, Becerra said the company warranted scrutiny but he did not discuss any specific investigations.

“It’s hard to believe that you’re not paying attention to a company like Amazon because it’s so ubiquitous,” Becerra said in an interview. “The amount of data that the company collects, the way that they use all that data, is it allowing them to essentially stifle real competition?”

Following reports in April that Amazon employees used data from independent sellers on its platform to develop competing products, lawmakers on the House Judiciary Committee called on Amazon Chairman and CEO Jeff Bezos to testify about its private-label practices.

In addition to the ongoing investigation in California, Amazon is the subject of several other investigations. The House Judiciary Committee is investigating Amazon's competitive practices and impact on the marketplace. Lawmakers said Amazon did not fully respond to requests for information about its relationships with sellers...

It can be seen that when faced with such problems, Amazon's strategy is to choose not to respond! However, avoiding the main issue is not the best way to solve the problem. Amazon is one of the world's leading technology companies and should initiate self-examination!

(Source: Seller Growth Academy)