Amazon has been fined 59 million euros in Germany

The Federal Cartel Office's statement states that Amazon suppresses the prices of third-party sellers on its platform through non-transparent mechanisms.

The statement said that Amazon, which accounts for around 60 percent of online sales in Germany, removes products from the platform or limits their visibility if it considers third-party prices to be “high.”

The statement said that Amazon had been fined €59 million for imposing price limits on independent sellers' listings and that Amazon's price-limiting powers were limited, except in cases of excessive pricing.

“Amazon must not abuse its market power”

Andreas Mundt, head of the Federal Cartel Office, recalled in his assessment of the situation that Amazon is a direct competitor of the providers on its platform and said: “Amazon cannot abuse its market power by manipulating its competitors' prices.” gave his assessment.

Mundt emphasized that Amazon suppresses the prices of third-party sellers through non-transparent mechanisms and emphasized that when sellers find “high prices,” the visibility of the products is deliberately reduced, thereby preventing free competition.

The first penalty imposed under the new authority

Amazon not only sells many products directly, but also offers a sales platform for other retailers with “Amazon Marketplace”.

The Federal Cartel Office said that the US company had used statistical models to calculate “dynamic and variable price caps” for third-party offers. Once these caps were exceeded, products were reportedly removed from the featured shopping section or removed from the platform entirely.

Notably, the ministry made use of its new authority for the first time, which came into force in 2023. On the other hand, the amount of 59 million euros was the first fine that the institute imposed on Amazon.

Amazon will appeal the decision

Amazon's statement rejected these allegations.

Amazon Germany's CEO Rocco Brauniger said they would appeal the decision on the grounds that it contradicts European Union (EU) competition standards and goes against consumers.

Brauniger claimed that if Amazon were now “forced to advertise uncompetitive or even exploitative prices in-store, it would result in a poor shopping experience.”