Amazon has lifted its policy of price restrictions on Marketplace sellers after official scrutiny in both the United Kingdom and Germany.
The company said it will no longer require third-parter traders to guarantee the lowest prices on its site. Until now they have been contractually restricted from offering lower prices elsewhere but the blanket change in policy came into force across the EU yesterday.
In what appears to be a bit of light-touch policing of 'potentially anti-competitive' practices, the UK inquiry into the policy is expected to close.
The German authorities said they would wait to see whether the policy was unequivocally withdrawn before making a final decision to close the case.
While the cases only concern Amazon’s policies within the EU it is understood that it still operates the same restrictions on sellers in the US.
The OFT said it has been concerned that Amazon's policies 'may raise online platform fees, curtail the entry of potential entrants, and directly affect the prices which sellers set on platforms - including their own websites - resulting in higher prices to consumers'.
The UK's Office of Fair Trading and the Federal Cartel Office in Germany have been investigating the situation following 'numerous complaints'. The OFT was examining how restrictive the practice was and whether it would affect prices third party sellers could charge on their own web sites.
'As Amazon operates one of the UK’s biggest ecommerce sites, the pricing on its website can have a wide impact on online prices offered to customers elsewhere. We welcome Amazon’s decision to end its Marketplace price parity across the European Union,' said a spokesman for the OFT.
'We are pleased the sellers are completely free to set their prices as they wish as this encourages price competition and ensures consumers can get the best possible deals. The OFT recommends that other companies operating similar policies review them carefully. Businesses concerned that they are being prevented from setting their own prices should not hesitate to contact the OFT,' the spokesman said.
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