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German Competition Authority Raises Concerns Over Amazon's Price Control Mechanisms

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The German competition authority, Bundeskartellamt, has expressed preliminary legal concerns regarding Amazon's price control mechanisms affecting marketplace sellers on its platform, suggesting potential violations of competition laws.

02.06.2025 | German competition authority


The Bundeskartellamt has sent a preliminary legal assessment to Amazon regarding its influence on the pricing of marketplace sellers on the Amazon Marketplace. The authority is concerned that Amazon's imposed price limits may constitute an abuse of dominance under specific regulations for large digital companies and violate general abuse provisions.

Amazon operates a vast digital e-commerce ecosystem, including the amazon.de platform, which accounts for approximately 60% of online retail sales in Germany. On this platform, Amazon engages in both retail and marketplace activities, allowing third-party sellers to sell directly to consumers.

Andreas Mundt, President of the Bundeskartellamt, stated that Amazon's rules significantly shape competition in online retail in Germany. The authority views Amazon's influence on competitor pricing, particularly through price ceilings, as potentially anti-competitive, especially if it prevents sellers from covering their costs and hinders the broader online retail market.

Amazon employs price control mechanisms to monitor seller prices. If prices are deemed too high, listings may be removed or receive reduced visibility. The parameters for these mechanisms are at Amazon's discretion and lack transparency, raising further concerns from the Bundeskartellamt.

According to the authority, the mechanisms restrict the visibility of seller offerings and interfere with their pricing freedom. The Bundeskartellamt believes these practices may lead to market concentration, as strict price limits could drive sellers off the platform. Additionally, Amazon's pricing strategies could coordinate marketplace prices in a way that disadvantages other online retailers.

In July 2022, the Bundeskartellamt determined that Amazon holds significant market power and is subject to enhanced abuse oversight. This decision was confirmed by the Federal Court in April 2024. The current investigation is being conducted in close coordination with the European Commission and the Federal Network Agency.

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