One important commitment made by the tech giant is to ensure that all product offers have an equal chance of being prominently displayed in the 'Buy Box' on the right side of the screen, allowing shoppers to make instant purchases. Additionally, Amazon has pledged not to use data from rival sellers in a way that gives its own retail business an unfair advantage.
This development appears to be a favorable outcome for both sides. The watchdog achieves fairer competition for sellers using the marketplace in the U.K., while Amazon is likely to avoid potential fines and eliminate the burden of an ongoing investigation. It is worth noting that the CMA's maximum penalty in such cases is a fine of up to 10% of the company's global turnover.
Although the CMA will seek public opinion on Amazon's commitments, it preliminarily believes that these commitments adequately address its concerns about competition. Should the regulator accept the commitments, it will terminate the investigation.
"Amazon's commitments to the CMA will help level the playing field for third-party sellers on Amazon Marketplace, enabling them to compete fairly against Amazon's own retail business. Ultimately, this will result in better deals for customers in the U.K.," stated Ann Pope, Senior Director of Enforcement at the CMA.
As news of these commitments emerged, Amazon's stock experienced a 1.8% decline in premarket trading.
Amazon has not yet responded to requests for comment as of early Wednesday.