Amazon and Meta have agreed to not use data collected from their marketplaces to unfairly benefit themselves, the UK’s Competition and Markets Authority announced on Friday.
The monopoly watchdog launched separate investigations into both internet giants’ business practices, and accused the Big Tech duo of not only gathering up information about sellers using their respective online souks, they also – surprise, surprise – exploited that info to get a commercial advantage.
In Amazon’s case, the e-commerce giant used vendors’ sales figures to decide which items it should sell, and how much to price products to get an edge over everyone else. The internet behemoth also promoted its own products with its Buy Box feature and it further cut into retailers’ margins by charging extra costs if they wanted to use Amazon’s Prime delivery services, the CMA said.
Now Amazon has committed to doing less of that. The CMA said the online souk will be prevented from using third-party seller data that gives it an unfair commercial advantage, and will allow rivals to negotiate rates with independent delivery contractors working on behalf of Amazon.
Who would have thought that if the owner and cashier of the marketplace is allowed to sell on there they would use their information dominance to choose which products to sell and then undercut the other vendors on the marketplace?!
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