Germany Fines Amazon $70 Million for Controlling Third-Party Seller Prices
Germany’s Federal Cartel Office has prohibited Amazon from using automated price control mechanisms on its marketplace and ordered the company to repay €59 million ($69.5 million) in profits gained through anticompetitive conduct.
The Violation
The Bundeskartellamt, Germany’s competition regulator, determined that Amazon abused its market dominance by employing various tools to influence how third-party sellers set prices on the platform. When the system flags a listing as “too high,” Amazon either removes it entirely or relegates it to less prominent sections like “See all buying options,” significantly reducing visibility and sales potential for sellers.
This practice violates both German competition law and EU antitrust regulations because Amazon operates its own retail business on the platform while competing directly with third-party vendors who account for approximately 60% of marketplace sales in Germany. Andreas Mundt, president of the cartel office, stated that influencing competitors’ pricing is only permissible “in the most exceptional cases,” such as price gouging.
Impact on Sellers
The cartel office emphasized that Amazon’s lack of transparency regarding how price limits are determined creates an uneven playing field. The authority warned that Amazon’s interference could force sellers “no longer being able to cover their own costs,” effectively removing them from the marketplace.
Amazon’s Response
Amazon plans to appeal the ruling to Germany’s Federal Court of Justice, which has one month to review the decision. Rocco Bräuniger, Amazon’s country manager for Germany, argued that the company would be “the only retailer in Germany forced to highlight non-competitive prices for customers,” calling the decision illogical for competition and innovation.
Ongoing Investigation
The €59 million penalty represents a partial disgorgement of illegal profits, as the cartel office investigation remains active and Amazon may face additional fines. The investigation began in November 2022 and has been conducted in cooperation with the European Commission’s enforcement of the Digital Markets Act.
This action represents a significant enforcement of antitrust rules in Europe against major tech platforms and reflects broader regulatory scrutiny of how large digital companies exercise market power.