On November 29, 2024, Amazon may be subject to a new investigation in Europe regarding its alleged competitive practices, as reported by Reuters. The inquiry will focus on how the company promotes its own products and those of partners within its online marketplace.
The investigation is expected to be led by Teresa Ribera, the new European Commissioner for Competition, who will take over from Margrethe Vestager, known for imposing significant fines on major tech companies.
If the investigation progresses and confirms anti-competitive practices, fines could reach up to 10% of Amazon's global revenue, as per the Digital Markets Act (DMA) and Digital Services Act (DSA).
In July, the European Commission indicated it would gather additional information about Amazon's practices, potentially leading to this in-depth investigation. A report from earlier this year stated that Amazon's product ranking models do not differentiate between its own products and those of partners.
Amazon maintains that it complies with European regulations and has been cooperating with authorities since two of its services became subject to specific market power rules.
New EU regulations prohibit companies with significant market power from favoring their own products over those of competitors using their platforms to reach customers.
Other major tech firms, including Apple, Alphabet (Google), and Meta, are also under scrutiny for compliance with the DMA. The outcomes of these investigations will be determined by the new competition commissioner.
Meanwhile, big tech companies have increased their lobbying efforts in the EU, with Amazon reportedly spending €5 million on lobbying activities last year. This figure was revised in a transparency report following complaints from various NGOs, nearly doubling from an initial record of €2.7 million.
Meta continues to lead in EU lobbying expenditures, spending €9 million in 2023, followed by Microsoft at €7 million and Apple at €6.5 million, with Google spending €6 million.