Written By In a major setback for Amazon, the European Union’s top court has ruled that the e-commerce giant must face two antitrust investigations simultaneously, overturning a lower court’s ruling. The ruling comes as regulators in the US and Europe have been stepping up scrutiny of Amazon and other tech giants over their business practices.
The investigations were launched by the European Commission in 2019 and relate to Amazon’s use of data from third-party sellers on its platform and its treatment of those sellers. The Commission is looking into whether Amazon uses data from third-party sellers to gain an unfair advantage in its own sales, while at the same time competing with them.
In a statement, the European Court of Justice said that the two investigations were “complementary and not entirely distinct”, and that they should proceed at the same time to “ensure that the application of EU competition law is not undermined”. The ruling means that Amazon could face significant fines if it is found to have breached EU competition rules.
The ruling is a blow to Amazon, which had argued that the two investigations should be kept separate, as they involve different legal questions and different sets of facts. The company had also argued that the Commission had not provided enough evidence to justify the two investigations.
Amazon has previously faced scrutiny over its treatment of third-party sellers on its platform. In 2019, the company settled a lawsuit with the German Federal Cartel Office, which had accused it of using its dominant market position to impose unfair terms and conditions on sellers.
The ruling also comes amid growing concern in Europe and the US over the power of tech giants such as Amazon, Google and Facebook, and their impact on competition and consumer privacy. Last year, the US Department of Justice launched an antitrust lawsuit against Google, while the Federal Trade Commission and a group of states filed a separate lawsuit against Facebook.
In Europe, the Commission has launched a number of antitrust investigations into tech giants in recent years, including Google, Apple and Facebook. The investigations have led to significant fines for some companies, and forced others to change their business practices.
In response to the ruling, an Amazon spokesperson said the company would “cooperate fully” with the investigations, and would “continue to work hard to support businesses of all sizes and help them grow”. The spokesperson also pointed to the company’s recent investments in small and medium-sized businesses, including a $1 billion fund to support entrepreneurs in India.
The ruling is likely to be seen as a victory for regulators in Europe and the US, who are seeking to rein in the power of tech giants and ensure that they operate in a way that is fair to competitors and consumers. It also sends a warning to other tech giants that they could face similar scrutiny if they are seen to be abusing their market power.
