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Cartel office examines Amazon's market power in the corona crisis

2020-08-17T16:49:13.258Z


Worldwide corona lockdowns have made Amazon's business boom. The Federal Cartel Office is now investigating allegations that the online retailer had others blocked for allegedly excessive prices.


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Amazon parcels (symbol image): "Market dominance not yet formally established"

Photo: Matias J. Ocner / imago images / ZUMA Press

Amazon is one of the winners of the corona crisis worldwide. The company was able to increase its sales in the second quarter compared to the previous year by more than 40 percent - and roughly double its profit.

However, the Bundeskartellamt is now investigating the allegation that Amazon abused a dominant position during the corona pandemic. It is about the online marketplace of the Internet department store, through which other retailers can sell their goods directly to customers.

"During the first Corona months there were complaints that Amazon blocked dealers because of allegedly excessive prices," said the President of the Federal Cartel Office, Andreas Mundt, of the "Frankfurter Allgemeine Zeitung". Amazon is an indispensable platform for many retailers. The Bundeskartellamt has not yet "formally established market dominance".

Monopolies Commission welcomes examination

The Bundeskartellamt ensured that Amazon abandoned its price parity clause as early as 2013, said Mundt. Until then, retailers would not have been allowed to sell a product cheaper via other online sales channels than on the Amazon marketplace. "Amazon must not be a price controller. That also applies now," said Mundt. Initial statements from Amazon are now being evaluated.

"Amazon sales partners set their own product prices in our store," said an Amazon spokeswoman. Amazon has "guidelines to ensure that sales partners offer their products at competitive prices." The systems are designed in such a way "that they take measures against price gouging".

The chairman of the Monopolies Commission, Achim Wambach, welcomed the exams. If Amazon intervenes in free pricing, that would be problematic, said Wambach radio program SWR Aktuell. However, it is unclear whether Amazon is really the market leader. "The Cartel Office has not yet checked that, and it is not that easy," said Wambach.

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apr / dpa

Source: spiegel

All business articles on 2020-08-17

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