Investigation into Amazon’s Marketplace

The CMA has accepted commitments offered by Amazon that address the CMA’s competition concerns in relation to how Amazon uses third-party seller data, how Amazon selects which product offer is placed within the ‘Buy Box’ and the negotiation of delivery rates for Prime orders.

From:
Competition and Markets Authority
Published
6 July 2022
Last updated
12 February 2024 — See all updates
Case type:
CA98 and civil cartels
Case state:
Closed
Market sector:
Retail and wholesale
Opened:
5 July 2022
Closed:
3 November 2023

Case timetable

Date Action
3 November CMA commitments decision published and investigation closed
September 2023 to November 2023 CMA consideration of representations received in response to the consultation on commitments
26 July 2023 to 1 September 2023 Commitments consultation period
26 July 2023 Consultation opened on commitments proposed by Amazon
January 2023 to July 2023 Investigation continuing
October 2022 to December 2022 Further investigation including information gathering. CMA analysis and review
5 July 2022 to September 2022 Initial investigation: information gathering, including issue of formal or informal information requests. CMA analysis and review of information gathered
5 July 2022 Investigation opened

Monitoring Trustee

Appointment of Monitoring Trustee

5 February 2024: The CMA has approved the appointment of Alcis Advisers by Amazon as Monitoring Trustee to monitor compliance with the binding commitments accepted by the CMA on 3 November 2023.

Monitoring Trustee contact

Alcis Advisers may be reached at:

Decision to accept binding commitments

3 November 2023: The CMA published a non-confidential version of its decision to accept commitments from Amazon in relation to certain practices on its Marketplace platform in the UK.

To address the CMA’s competition concerns, Amazon has committed to:

  1. Ensure Amazon does not use rival sellers’ Marketplace data to gain an unfair advantage over other sellers. This follows concerns that Amazon’s access to commercially sensitive data relating to third-party sellers helped its retail business to decide which products to sell, manage stock levels for those products, set prices and make other important commercial decisions.
  2. Guarantee all product offers are treated equally when Amazon decides which will be featured in the ‘Buy Box’. This relates to concerns that products being offered by third-party sellers were less likely to appear in the Buy Box than similar offers from either Amazon’s own retail business or third-party sellers that use Amazon’s delivery services.
  3. Allow third-party businesses using Marketplace to negotiate their own rates directly with independent providers of Prime delivery services so that customers can benefit from lower delivery costs where better rates are negotiated.
  4. Require Amazon to appoint an independent trustee who will monitor the company’s compliance with these commitments. The CMA will have a direct say in this appointment, ensuring they have the necessary skills and expertise for the job.

Decision and press notice

Consultation on commitments

26 July 2023: The CMA published a notice of intention to accept commitments offered by Amazon and invited representations from interested third parties on the proposed commitments. The CMA will consider any representations made in response to the consultation before making a final decision on whether or not to accept the proposed commitments.

Case information:

On 5 July 2022, the CMA launched an investigation under Chapter II of the Competition Act 1998 into suspected breaches of competition law by Amazon. The investigation concerns the way that non-public third-party seller data may be used within Amazon’s retail business, how Amazon sets criteria selecting which product offer is placed within the ‘Buy Box’ and which sellers can list products under Amazon’s ‘Prime label’ on its Marketplace in the UK.

Press release: CMA investigates Amazon over suspected anti-competitive practices (06.07.2022)

Notes:

  • The ‘Buy Box’, or Featured Offer, is displayed prominently on Amazon’s product pages and provides customers with one-click options to ‘Buy Now’ or ‘Add to Basket’ in relation to items from a specific seller.
  • Offers under the ‘Prime label’ are eligible for certain delivery benefits, such as free and fast delivery, that are only available to Prime users under Amazon’s Prime loyalty programme.
  • The investigation is under Chapter II of the Competition Act 1998.
  • The CMA has not reached a view as to whether there is sufficient evidence of an infringement of competition law for it to issue a statement of objections to any party under investigation. Not all cases result in the CMA issuing a statement of objections.
  • The CMA will consider any representations it receives before any decision is taken as to whether competition law has in fact been infringed.
  • Further detail of the CMA’s procedures in Competition Act 1998 cases is available in CMA8.
  • Changes to the timing of original entries in the case timetable will be made if the estimated timing changes.

Contacts

Published 6 July 2022
Last updated 12 February 2024 + show all updates

  1. Appointment of monitoring trustee published

  2. Commitments secured from Amazon and case closed

  3. Timetable updated.

  4. Consultation on proposed commitments published

  5. Case timetable updated.

  6. Update to case timetable published.

  7. Update added to case timetable.

  8. First published.

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