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
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