Thursday 11 June 2015

Amazon in new European competition probe


The European Commission has announced a further antitrust investigation into Amazon’s e-book business.  The Commission alleges that Amazon has abused its dominant position by insisting on anti-competitive terms in its contracts with publishers.  Under scrutiny are Amazon’s most favoured nation (MFN) clauses which require e-book publishers to inform Amazon when they offer alternative or more advantageous terms to competitor e-book distributors and require publishers to offer Amazon equivalent terms to those offered to rivals.

The Commission has said that it will focus  on Amazon’s English and German e-book businesses.  It believes that the restrictions make it more difficult for Amazon’s rivals to offer innovative services.

This is the second time that the e-book sector has been examined by the Commission.  In 2011 the Commission launched a case against Apple and five international publishers alleging that they colluded to restrict retail price competition.  The case was closed by commitments.

MFN clauses have been the subject of antitrust challenges in other countries.  A US court found in 2013 that Apple was in violation of US antitrust law through its organisation of a conspiracy among publishers to increase e-book prices using MFNs.

Amazon is Europe’s largest e-book distributor and has faced competition investigations in the member states including in the UK and Germany.  Amazon is also one of the companies under investigation by the Commission under State aid rules in respect of individual tax arrangements agreed with the member state tax authorities.  The latest investigation will no doubt increase the pressure that the company is under in defending antitrust cases around the world.

Source:  Antitrust: Commission opens formal investigation into Amazon's e-book distribution arrangements, Brussels, 11 June 2015

No comments:

Post a Comment