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In any case, the Bundeskartellamt's initial findings and issues are likely to likewise play a function in the EC's examination. Amazon's conduct as described in the EC's RFI raises a number of competitors concerns. If the EC finds its suspicions validated, this might total up to an infraction of Articles 101 and/or 102 of the Treaty on the Performance of the European Union ("TFEU").

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Post 102 TFEU forbids the abuse of a dominant market position. In case of a violation, the EC might impose a fine of up to 10% of Amazon's total turnover in the preceding organization year. Unlike other RFIs, the EC has actually exposed whether it is pursuing the case under Short article 101 and/or 102 TFEU, and what the relevant theory of damage would be.

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The double position permits Amazon to adjust its own offerings on the retail level to the success or failure of other companies offering identical or similar items via the Amazon Marketplace. The risk of a business failure relating to the recoupment of an investment is close to zero once Amazon has actually found out from its Market data that a specific item offers well.

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It is also possible that the EC examines Amazon's collection and usage of the marketplace data collected through its Marketplace as an "exchange of info" amongst completing merchants, activating issues under Short article 101 TFEU. For that, Amazon's practice would need to amount to an "agreement between undertakings" or a "concerted practice" with the object or impact of restricting competition between Amazon and the merchants in retail sales.

Appropriate to competition are business information a rival can take into consideration for its own strategic market habits, in particular sales figures, market shares, prices/discounts/bonuses, consumer names and costs. With concerns to Amazon, 2 different competitive relationships need to be identified. In  Need More Info?  as a merchant platform, Amazon engages in a vertical relationship with merchants.

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Any product-specific information enables Amazon to continuously enhance its search and ranking algorithms. The requirement to enhance and innovate the service could thus justify the gathering of such merchants' information that is required for the matching of merchants with shoppers. Both sides of the marketplace benefit from more pertinent product search engine result.