German antitrust authority fines amazon for pricing policy violations letter
In June 2025, the German Federal Cartel Office (Bundeskartellamt) issued a preliminary legal assessment warning Amazon that its "Fair Pricing Policy" and associated price-control algorithms for third-party sellers likely violate German and European competition laws.
Here are the key details regarding this action:
The Allegation: The Bundeskartellamt found that Amazon uses automated, non-transparent algorithms to set "price caps" for products sold by third-party sellers. If sellers exceed these caps, Amazon limits their product visibility, removes them from the "Buy Box," or bans the products entirely.
The Issue: As Amazon acts as both a marketplace operator and a competitor to third-party sellers, these price controls are considered an abuse of its dominant position.
Significance: This investigation is based on the 2022 determination by the Bundeskartellamt that Amazon holds "paramount significance for competition across markets," allowing for stricter antitrust enforcement under Section 19a of the German Competition Act (GWB).
Status: As of June 2025, this is a preliminary finding, and Amazon has the opportunity to respond to these allegations.