The Bundeskartellamt has taken decisive action against Amazon.com Inc. and Amazon EU S.à r.l., prohibiting their practice of controlling merchant prices on the German Amazon Marketplace. This decision comes as Amazon holds a significant share of the online retail market in Germany, with around 60% of sales coming from independent third-party sellers.

According to Andreas Mundt, President of the Bundeskartellamt, Amazon's influence on competitor pricing, even through price caps, is only permissible in exceptional cases such as price gouging. The authority expressed concerns that such practices could distort competition and lead to higher prices for consumers.

Amazon employs various price control mechanisms that can lead to the removal of offers or reduced visibility in the marketplace if prices are deemed too high. This can significantly impact the sales of third-party merchants, who bear the economic risks of their pricing strategies.

The Bundeskartellamt emphasized that while Amazon aims to provide low prices to consumers, the means of achieving this through price control mechanisms are not justified. Alternative methods, such as lowering fees for merchants, could be employed instead.

In a notable move, the Bundeskartellamt has also decided to recover an economic benefit of approximately €59 million that Amazon gained through its anti-competitive behavior, utilizing a presumption rule established in a recent reform.

This decision was coordinated with the European Commission and aligns with the enforcement of the Digital Markets Act. Amazon has the right to appeal the decision within a month, which will be reviewed by the Federal Court.