Amazon Likely to Face Antitrust Investigation in EU... Decision Expected Within Months

Amazon, the world's largest e-commerce company, is reported to face an antitrust investigation by the European Union (EU) next year.

AFP Yonhap News

According to major foreign media on the 21st (local time), EU competition authorities are expected to investigate whether Amazon prioritizes its own brand products on its online marketplace next year. This will be subject to the Digital Markets Act (DMA), which aims to prevent 'Big Tech abuse'.

Multiple sources explained, "The decision regarding the timing and progress of the investigation will be made within the next few months by Teresa Ribera, the next EU competition commissioner." She will take office next month, succeeding Margrethe Vestager, the current commissioner who is about to retire.

If a violation of the DMA is confirmed, Amazon could be fined up to 10% of its global revenue. If it is judged to be a repeated violation, the fine could be up to 20%.

In this regard, Amazon stated that it complies with DMA regulations and is actively cooperating with the EU Commission. The DMA is a law that designates platform operators of a certain size as 'gatekeepers' to prevent abuse of market dominance by large platform operators and imposes special regulations. The gatekeepers include seven companies: Alphabet, Google's parent company; ByteDance, TikTok's parent company; Amazon; Apple; Meta Platforms; Microsoft (MS); and Booking.com.

Meanwhile, on the New York Stock Exchange today, Amazon's stock price closed down 2.22% compared to the previous session. In after-hours trading, it also showed a slight decline, threatening the $198 per share level.