Amazon's pricing controls may be anticompetitive, German regulator warns

German antitrust authorities have issued a warning to Amazon regarding its pricing strategies for third-party sellers, suggesting they may violate competition laws. The Federal Cartel Office released a preliminary evaluation indicating that Amazon's pricing controls restrict the visibility of seller products and impose limitations on their ability to set prices due to unclear marketplace regulations. According to the Cartel Office, Amazon employs algorithms and statistical models to determine pricing limits for products, flagging those deemed 'too high' or 'not competitive.' Such products may then be demoted in search rankings, excluded from advertising, or removed from the prominent 'buy box' feature that appears first when users select a product. The buy box is crucial as it is the section that facilitates purchases when a shopper clicks 'Add to Cart.' Andreas Mundt, President of the Federal Cartel Office, stated, 'The competition in online retail in Germany is significantly influenced by Amazon's platform rules.' He further remarked that since Amazon competes directly with other retailers on its platform, its influence on competitors' pricing practices raises serious competition concerns. The Cartel Office emphasized that Amazon's pricing policies could jeopardize sellers' businesses and discourage other retailers from offering competitive prices. In response, an Amazon spokesperson expressed strong disagreement with the Cartel Office’s initial findings, arguing that altering its pricing mechanisms would negatively impact customers and selling partners. The spokesperson stated, 'If Amazon is hindered from assisting customers in finding competitively priced options, it will ultimately degrade the shopping experience.' The company has the opportunity to provide feedback to the Cartel Office before a final decision is made. In 2022, Amazon settled with EU antitrust regulators regarding its seller data practices and agreed to introduce a second buy box for competing offers in Europe. In addition, the U.S. Federal Trade Commission is currently investigating Amazon’s pricing algorithms as part of a broad antitrust lawsuit initiated in 2023, with a trial scheduled for October 2026.