German Regulator Slaps Amazon with €59 Million Fine for Price Control Practices
In a significant move against Big Tech's market dominance, Germany's competition authority on Thursday mandated Amazon to halt its price control practices for third-party sellers and repay €59 million ($70 million) deemed as unlawfully obtained gains.
The Federal Cartel Office (Bundeskartellamt) stated that Amazon, which holds an estimated 60% share of Germany's online retail market, employed opaque algorithms to review and effectively cap prices set by independent retailers on its platform. While sellers technically set their own prices, Amazon's systems could suppress or delist items considered too expensive, creating an uneven playing field.
"Amazon directly competes with the very sellers on its marketplace," said Andreas Mundt, President of the Cartel Office. "Influencing competitors' pricing is permissible only in extreme circumstances, such as clear price gouging. The risk of abusing this dual role to stifle competition is too high."
The €59 million fine represents only a portion of potential repayments, as investigations that began in November 2022 are ongoing. The watchdog emphasized that Amazon's methods lacked transparency, leaving sellers unclear on how price thresholds were determined.
Amazon Germany's head, Rocco Bräuniger, called the decision "unprecedented" and vowed to appeal. "This directly contradicts EU competition law principles focused on consumer welfare. It would force Amazon alone to highlight non-competitive prices, harming customers, partners, and market health," he stated. The company has one month to file an appeal to the Federal Court of Justice.
This ruling amplifies Europe's tightening regulatory scrutiny on U.S. tech giants, setting a potential precedent for how platform operators manage seller competition. Analysts suggest it could prompt similar reviews in other EU member states.
Reactions from the Market
Klara Schmidt, small business owner in Berlin: "Finally, some accountability. For years, we've felt pressured to lower prices artificially just to stay visible on Amazon. This isn't just about money; it's about fair competition."
David Chen, e-commerce analyst at Frankfurt Consultancy Group: "This is a nuanced case. While antitrust enforcement is necessary, platforms also have a legitimate interest in preventing consumer price exploitation. The key is transparent, consistent rules."
Markus Weber, founder of a tech watchdog NGO: "It's a slap on the wrist. €59 million is pocket change for Amazon. Until regulators impose fines that truly hurt and break up these monopolistic structures, nothing will change. This is performative enforcement."
Sophie Müller, logistics manager in Hamburg: "As someone who uses Amazon both as a seller and a buyer, I see both sides. But non-transparent algorithms that secretly control the market are bad for everyone in the long run. The appeal will be crucial to watch."