Amazon to Overhaul Marketplace Terms as Part of German Settlement
July 17 2019 - 5:13AM
Dow Jones News
By Sara Germano
BERLIN -- Amazon.com Inc. has agreed to change the terms of
service on its platforms for third-party sellers around the world,
following an investigation in Germany into the e-commerce giant's
practices in its fast-growing marketplace segment.
The settlement marks the conclusion of an eight-month probe by
the German Federal Cartel Office, which along with counterparts in
the European Union has stepped up oversight and regulation of large
U.S. tech giants in recent years.
The European Commission and such competition authorities as
those in Austria and Italy are investigating Amazon on various
topics, including the treatment of third-party sellers, and whether
the e-commerce company's collection of data about transactions
gives it an unfair advantage over others who sell on its
platform.
In a settlement announced by the German regulator, Amazon is set
to amend certain terms for its marketplace platform, including
assuming some liability for third-party sales, offering sellers 30
days' notice of account suspensions, and reducing its requirements
around confidentiality terms for sellers.
In a statement, Amazon said it had "constructive" discussions
with the German regulator and is making changes to its terms "to
clarify selling partner rights and responsibilities."
The changes satisfy what Federal Cartel Office President Andreas
Mundt said were "numerous complaints" from Amazon sellers.
"They concern the unilateral exclusion of liability to Amazon's
benefit, the termination and blocking of sellers' accounts, the
court of jurisdiction in case of a dispute, the handling of product
information and many other issues," he said in a statement.
The changes are scheduled to take effect in 30 days, according
to the regulator. Amazon's third-party marketplace has eclipsed its
primary retail arm as the largest share of sales, at 58% in 2018,
according to Chief Executive Jeff Bezos' annual letter to
shareholders in April.
Germany is Amazon's second-largest sales market behind the U.S.,
with $19.9 billion in sales in 2018, according to the company's
annual filing. Its German third-party marketplace had more than
300,000 active sellers last year, and it accounted for between 40%
and 50% of volume sales across all five Amazon third-party
marketplaces in Europe.
Write to Sara Germano at sara.germano@wsj.com
(END) Dow Jones Newswires
July 17, 2019 04:58 ET (08:58 GMT)
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