Amazon proposes changes to appease UK competition regulators

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Amazon has proposed a series of measures to ensure third-party sellers are treated fairly on its marketplace platform in the UK in response to a probe by the competition regulators.

The changes will give vendors equal placement alongside Amazon’s own goods near the “buy box”, a feature that appears on the right-hand side of a product when consumers add items to their shopping cart and that generates the majority of purchases on the site.

Amazon’s response aims to resolve concerns from the Competition and Markets Authority after the UK regulator launched an investigation a year ago into whether the platform prioritised its own business over other sellers.

The commitment “will help ensure that third-party sellers on Amazon Marketplace can compete on a level-playing field against Amazon’s own retail business,” Ann Pope, senior director for enforcement at the CMA, said in a statement on Wednesday. “Ultimately, [it will] mean that customers in the UK get a better deal.”

The US tech giant’s move mirrors similar actions accepted in December by EU antitrust regulators for the Amazon marketplace in Europe.

The CMA, which is consulting on the proposals until September, said its preliminary view was that Amazon’s offer “addresses its competition concerns”.

Amazon also pledged not to use rival sellers’ marketplace data, such as stock levels or demand, to gain an unfair advantage.

After concerns that the platform gave priority to sellers that used Amazon’s warehousing and delivery services over other options, the proposals include allowing third-party businesses to negotiate their rates directly with providers of Prime delivery services.

An independent trustee to monitor Amazon’s compliance is to be appointed, with the CMA directly involved in the hiring process.

If the proposals are accepted, Amazon will avoid a full investigation by the regulator and a potential fine of up to 10 per cent of global turnover.

As part of the deal, Amazon agreed to create a second “buy box”, displaying alternatives for customers in the EU with a neutral offer. Sellers using the Prime membership scheme will also be able to choose any logistics company and negotiate their contracts directly instead of being locked into using Amazon’s logistics services.

The Financial Times previously revealed that Brussels was struggling to gather sufficient evidence to bring its case against Amazon focused on the way its algorithm boosted its own products over rivals, partly because it had difficulty understanding how the company’s algorithms functioned.

Amazon has been approached for comment.