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Amazon Said to Lift Restrictions on Sellers Criticised as Anti Competitive

Amazon Said to Lift Restrictions on Sellers Criticised as Anti-Competitive

By Reuters | Updated: 12 March 2019 18:20 IST

Amazon.com has decided to stop telling third-party sellers on its platform that they cannot offer lower prices on competing websites, a source said on Monday.

The source gave no details on the decision.

The decision comes in the wake of a letter from Senator Richard Blumenthal arguing that the practice would "stifle market competition and artificially inflate prices." The December 19 letter was sent to Federal Trade Commission Chairman Joseph Simons and Assistant Attorney General Makan Delrahim.

Blumenthal said Amazon had enforced its policy in the past by threatening to remove merchants who violated the contract clause. He argued the policy raised antitrust concerns and should be investigated by US regulators.

Germany's antitrust authority launched an investigation into whether Amazon is exploiting its market dominance in its relations with third-party retailers in November.

Germany is Amazon's second-biggest market.

Last week, Amazon.com said it will close all of its US pop-up stores and focus instead on opening more book stores. The news underscores how the online retailer is still working out its brick-and-mortar strategy.

Pop-up stores for years helped Amazon showcase novel products like its voice-controlled Echo speakers, but the company is now able to market those products and more at its larger chain of Whole Foods stores, acquired in 2017, and cashierless Amazon Go stores, which opened to the public last year.

The online retail giant will also open more "4-star stores" - stores that sell items rated 4-stars or higher by Amazon customers, a company spokesperson added.

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