The European Commission (EC) has opened a formal antitrust investigation into certain business practices by Amazon in the distribution of e-books.
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The Commission will in particular investigate certain clauses included in Amazon's contracts with publishers.
These clauses require publishers to inform Amazon about more favourable or alternative terms offered to Amazon’s competitors and/or offer Amazon similar terms and conditions than to its competitors, or through other means ensure that Amazon is offered terms at least as good as those for its competitors.
The Commission has concerns that such clauses may make it more difficult for other e-book distributors to compete with Amazon by developing new and innovative products and services. The Commission will investigate whether such clauses may limit competition between different e-book distributors and may reduce choice for consumers.
If confirmed, such behaviour could violate EU antitrust rules that prohibit abuses of a dominant market position and restrictive business practices.The opening of proceedings does not prejudge in any way the outcome of the investigation.
E-books have experienced a surge in popularity in recent years and are of increasing importance to online retail. Amazon is currently the largest distributor of e-books in Europe. Initially, the Commission's investigation will focus on the largest markets for e-books in the European Economic Area, namely e-books in English and German.
The Commission has concerns that certain clauses included in Amazon's contracts with publishers concerning such e-books could constitute a breach of EU antitrust rules that prohibit the abuse of a dominant market position and restrictive business practices.
In particular, the investigation is focused on clauses which seem to shield Amazon from competition from other e-book distributors, such as clauses granting it: the right to be informed of more favourable or alternative terms offered to its competitors; and/or the right to terms and conditions at least as good as those offered to its competitors.
The Commission will now investigate further whether such clauses may hinder the level playing field and potentially decrease competition between different e-book distributors to the detriment of consumers. ■