Amazon wants to settle a pair of antitrust probes in the EU in hopes of avoiding steep fines and directives to alter its business practices, Reuters reported on Tuesday (Nov. 9).
Citing “people familiar with the matter,” the news agency said Amazon has begun discussions with the European Commission (EC) and has offered to make concessions. The EC has the power to fine companies up to 10% of their turnover. In the case of Amazon, that fine would be $38.6 billion, based on its 2020 revenue.
The commission charged Amazon last year with using its power — both in terms of data and size — to gain an unfair edge over the smaller competitors selling on its platform. The EC also launched an investigation into whether Amazon engaged in preferential treatment of its own offers and those of sellers that use its delivery and logistics services.
Read more: Amazon Cries Foul in Lawsuit Filed by European Union Regulators
Amazon filed its own suit against the EU earlier this year, saying that it should not have given the Italian Competition Authority leave to sue Amazon, and that the Italian suit should have been folded into the larger EU case.
The retail giant, along with Walmart’s Flipkart, faces a similar investigation in India, where that country’s competition authority is looking into whether the companies promoted select sellers on their platforms and offered discounts that hindered competition. The commission had spotlighted four antitrust behaviors allegedly practiced by both Amazon and Flipkart, including prioritizing some sellers with exclusive smartphone launches and selective discounts.
Read more: India Speeds up Antitrust Probe Into Amazon, Walmart’s Flipkart
Amazon was also fined $887 million by the Luxembourg National Commission for Data Protection (CNDP), which claims the retail giant failed to comply with the European Union’s General Data Protection Regulation (GDPR).
Also see: EU Privacy Regulator Fines Amazon $887M
According to Reuters, the settlement talks in this case may take months to conclude, and there’s no guarantee that the two sides will come to an agreement. The EC declined to comment on the matter, Reuters said.
