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German Antitrust Watchdog Warns Amazon Over Marketplace Price Controls

By  |  June 2, 2025

Amazon is facing renewed scrutiny in Germany, as the nation’s top antitrust authority raised concerns over the company’s pricing practices for third-party sellers. In a preliminary finding released Monday, Germany’s Federal Cartel Office warned that Amazon’s control over how retailers price their products on its platform may violate both national competition rules and European Union regulations.

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    According to Bloomberg, the regulator’s assessment suggests that Amazon’s pricing policies — particularly its ability to limit or suppress listings it deems overpriced — may undermine fair competition within the country’s digital economy. These policies could potentially tilt the competitive landscape, especially given that Amazon acts both as a platform operator and a direct competitor to many of the independent sellers using its site.

    “Competition in the online retail business in Germany is largely determined by Amazon’s rules for the platform,” said Andreas Mundt, president of the Cartel Office. He noted that any influence Amazon has on its rivals’ pricing decisions is “generally questionable from a competition perspective.”

    Per Bloomberg, the watchdog’s concerns center on Amazon’s use of proprietary algorithms to monitor and evaluate prices. These algorithms consider historical pricing, current listings, and external market data to set dynamic price ceilings. Offers that exceed these caps may be excluded from prominent placements, such as the platform’s “Buy Box,” or even hidden from general search results — an approach that critics argue lacks transparency and accountability.

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    Amazon, which has faced similar challenges from regulators in other jurisdictions, pushed back against the findings. The company stated that adopting the Cartel Office’s recommendations could hurt both consumers and merchants. “If Amazon was prevented from helping customers find competitive deals, it would lead to a poor shopping experience as we would have to favor uncompetitive or even abusive pricing in our store,” the company said.

    The preliminary assessment is part of a broader regulatory crackdown on major U.S. tech firms operating in Europe. According to Bloomberg, Amazon is now being given the opportunity to respond before the Cartel Office makes a final decision. This latest development underscores the growing tension between global e-commerce platforms and regional authorities seeking to ensure fair digital market practices.

    Source: Bloomberg