Tech giants like Google, Microsoft, and Apple have been on the receiving end of the European Union (EU) lately. Amazon, on the other hand, is already a scanner of antitrust regulators in the US. But, it seems a new problem is already knocking on its doors. According to a recent report by Reuters, the EU is likely to start an antitrust investigation against Amazon in 2025.
Amazon is likely to face an antitrust investigation by the EU in 2025 for alleged violation of the DMA
The EU is reportedly planning to investigate the company for violating the Digital Markets Act (DMA). The report suggests that the EU isn’t very happy with Amazon’s practice of promoting and offering its products ahead of other third-party sellers in its online store.
The incoming EU antitrust chief Teresa Ribera will reportedly make the decision to start the investigation. Ribera will take the chair of the current EU antitrust chief, Margrethe Vestager, who is stepping down after serving two terms. If the EU finds Amazon guilty in this matter, the company may have to pay a fine of up to 10% of its global annual turnover.
Amazon denies any wrongdoing
Meanwhile, Amazon has denied any wrongdoing. The company says it is compliant with the DMA and has been working in line with the EU rules. In addition, Amazon has previously said that its ranking algorithms don’t differentiate between its products and those from third-party sellers.
For those unaware, the European Commission introduced the DMA last year. One of its provisions restricts major tech giants from giving preference to their products and services on their platforms.
Besides antitrust allegations, the US Congress recently criticized Amazon for its ties with TikTok. Time will tell how Amazon approaches this whole situation. But from the looks of it, 2025 could be a challenging year for the online retail giant.
