The Bundeskartellamt has issued a preliminary legal assessment regarding Amazon's influence on pricing for sellers on its Marketplace, particularly focusing on its Fair Pricing Policy. The authority suggests that Amazon's price control mechanisms, which set price caps for sellers, may be in violation of German competition law and EU regulations.

Amazon operates a significant digital e-commerce ecosystem, with its platform accounting for approximately 60% of online retail sales in Germany. The company competes directly with third-party sellers on its Marketplace, raising concerns about its ability to influence their pricing strategies.

Andreas Mundt, President of the Bundeskartellamt, highlighted that Amazon's rules for its trading platform significantly impact competition in Germany's online retail sector. The authority is particularly concerned that Amazon's price caps could prevent sellers from covering their costs, thereby hindering fair competition.

Amazon's price control mechanisms involve reviewing seller prices and removing listings that exceed set price caps. This practice can restrict the visibility of sellers' offers and limit their ability to set competitive prices. The Bundeskartellamt's assessment indicates that these restrictions are unreasonable and lack transparency, potentially constituting abusive conduct under German and EU competition laws.

The authority's investigation has revealed that Amazon's discretionary setting of price caps may lead to a higher concentration of sellers unable to compete effectively, ultimately harming the competitive landscape. The Bundeskartellamt has previously classified Amazon as a company of paramount significance for competition, subjecting it to extended abuse control provisions.

In collaboration with the European Commission and other regulatory bodies, the Bundeskartellamt is conducting a thorough investigation into these practices, which could have significant implications for Amazon and its Marketplace operations.