Amazon Hit With $28 Billion Antitrust Complaint

By Staff of Admiral Markets

Friday, November 13, 2020 3:49 AM EST

Amazon (AMZN) shares are on the backfoot after the European Commission filed formal preliminary antitrust charges against the company this week. If successful it could cost Amazon more than $28 billion which is about 10% of the company's global revenue.

Amazon hit with 28 billion antitrust complaint

The antitrust complaint is over the way Amazon uses data from third-party sellers. The European Commission believes that it uses data from its third-party sellers to develop its own retail strategies which means Amazon is benefiting from being a marketplace operator and a competitor to its own users through launching its own products within the same marketplace.

A statement from Competition Commissioner Margrethe Vestager said: "We must ensure that dual-role platforms with market power, such as Amazon, do not distort competition. Data on the activity of third-party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers."

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