CMA Resolves Investigations into Amazon’s Unfair Merchant Practices
Amazon and Meta The CMA’s probe into Amazon’s online marketplace centered on potential preferential treatment for merchants paying for additional services, potentially harming competition and customers. Additionally, the inquiry examined Amazon’s selection process for the buy box and its handling of data.
Key Agreements and Changes in Amazon’s Practices
In response to the investigation, Amazon has committed to ceasing the use of third-party sellers’ data for its own benefit. The company has also agreed to allow sellers to negotiate their own delivery rates with independent services, ensuring fair competition. Furthermore, the CMA outlined measures to provide equal opportunities for sellers to appear in the buy box, which offers simplified purchasing options for customers. Amazon expressed its cooperation with the CMA and referred to its previous settlement with the European Union on similar antitrust concerns.
CMA’s Scrutiny on Meta’s Data Use and Marketplace Embedding
The CMA’s examination of Meta’s practices revolved around the collection and utilization of data, which potentially gave the company an advantage over competitors in the provision of classified data and online dating services. Regulators specifically focused on Meta’s integration of Facebook Marketplace and its potential impact on market access for competing platforms. The CMA’s directive aims to allow competitors advertising on Meta platforms to opt-out of data usage by Facebook Marketplace, establishing a more equitable playing field.
Commitments and Acknowledgements from Meta
In response to the CMA’s investigation, Meta has pledged to restrict the utilization of advertising data in product development. The company expressed satisfaction with the decision to conclude the case, as it faces ongoing antitrust accusations from the European Union.
SOURCE: Ref Image from The Times Of India
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