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Amazon faces Austrian probe over treatment of retailers

Austria’s Market watchdog said on Thursday that it had launched an investigation into Amazon, as it suspects the online retail giant of discriminating against its Austrian retail partners.

The new investigation puts Amazon’s treatment of local vendors under additional scrutiny after Germany’s antitrust authority started a similar investigation late in 2018.

The case was triggered by the Austrian Retail Association, which complained that Amazon abused its double role as a retailer and as a market place for others, by stifling third-party vendors that sell through Amazon.

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Austria’s Federal Competition Authority (BWB) said it is looking into information that Luxembourg-based Amazon Services Europe is closing seller accounts abruptly, forces sellers to disclose their purchase prices, and tampering with sellers’ product rankings.

In addition, Amazon’s contract clauses on legal dispute settlement may make it difficult for vendors to take legal action, the competition watchdog said.

“The digital world is not a legal vacuum. Companies operating on a global scale must adhere to applicable Austrian laws and regulations,’’ BWB chief, Theodor Thanner, said in a statement.

“We will fully cooperate with the BWB. Similarly, we will continue our efforts to support the growth of small and medium-sized companies,’’ a company spokesman said in Germany

The spokesman added that the business of third-party vendors on Amazon is growing much faster than Amazon’s own sales in Europe.

The BWB is working with the European Commission and with the German Bundeskartellamt antitrust body on the matter. (NAN)

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