CMA to investigate Amazon’s use of data

The Competition and Markets Authority (CMA) is set to formally investigate Amazon’s use of data.

The move follows months of analysis by the competition watchdog according to sources reported by The Financial Times.

The tech giant’s e-commerce division was an obvious winner during the pandemic; its UK sales jumped 51 per cent year-on-year to £19.4 billion for its 2020 financial year.

The investigation is reportedly set to centre on how the company uses the data it collects on its platform.

The probe will also explore whether the e-commerce giant favours retailers who use its own logistics service when it comes to allowing access to its “buy box” feature and to its Amazon Prime customer base.

The “buy box” is the white box on the right side of the Amazon product detail page, which allows customers to add purchases directly to their cart.

Not all sellers can use the buy box feature, only certain established businesses can use it.
The timing and scale of the investigation is still unconfirmed according to the sources.

The move comes after the CMA opened an investigation into Facebook over its collection and use of data early this month.

In February, the competition watchdog said it was planning several antitrust investigations into the practices of BigTech giants throughout the rest of the year.

Similar investigations into Amazon are taking place in mainland Europe; the German Federal Cartel Office announced the initiation of proceedings against Amazon based on new rules for BigTech companies in May.

Amazon has not yet replied to a request for comment from National Technology News.

    Share Story:

Recent Stories