// Amazon settles EU competition inquiries to avoid a $47bn fine
// Breaching the terms of the agreement will result in a fine worth 10% of the online giant’s annual turnover
Amazon has avoided a $47 billion (£39 billion) fine after signing a new deal with European Union regulators to settle two long-standing competition inquiries.
The online giant has agreed to make substantial changes to its business practices which have long been criticised for having an unfair advantage over third-party sellers.
The deal will remain in place for five to seven years and as part of the agreement, Amazon has committed to treating marketplace sellers equally and use “non-discriminatory conditions” when products are shown on it’s “buy box” section of the website.
The section generates more than 90% of views on the marketplace and a similar volume of transactions.
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The business will establish a second buy box for a rival product if its price and delivery vary greatly from the Amazon product already displayed.
The amendments to its product listing will address the EU concerns that the box favours Amazon’s own retail operations.
“While we continue to disagree with several of the preliminary conclusions the European Commission made, we have engaged constructively to ensure that we can continue to serve customers across Europe,” an Amazon spokesperson said.
The terms include allowing Prime sellers to choose their own delivery providers outside of the giant’s pre-approved selection as well as not using their data for its own retail business.
“Under the supervision of the Commission, an independent trustee will be in charge of monitoring the implementation and compliance with the commitments.”
Amazon could face a fine worth 10% of its annual turnover if it breaches the terms of the agreement.
At the beginning of the month, Currys chief executive Alex Baldock slammed the online giant claiming it was getting a “free ride” from UK retailers by using the country’s infrastructure while swerving taxes.
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