Amazon (AMZN.O) is likely to face an EU investigation next year regarding whether it gives preferential treatment to its own branded products on its online marketplace, as European antitrust regulators work to build a case under new landmark rules, according to sources familiar with the matter.
The U.S. online retailer could face a fine of up to 10% of its global annual revenue if found guilty of violating the European Union’s Digital Markets Act (DMA), which aims to curb the influence of Big Tech.
The timing and decision on whether to go ahead with an investigation will be taken by incoming EU antitrust chief Teresa Ribera in the coming months, the people said. The Spaniard is set to take up her post next month, replacing outgoing Margrethe Vestager.
Amazon said it is compliant with the DMA and has engaged constructively with the Commission on its plans since the designation of two of its services as important gateways between businesses and consumers and thus subject to the new rules.
The firm shares fell as much 3% to $196.91 after the Reuters story was published.
The DMA, which came into effect last year, prohibits Amazon and six other Big Tech companies from giving preference to their products and services on their platforms, among other requirements.
The European Commission, which acts as the EU antitrust enforcer, in March said it was gathering facts and information on Amazon’s treatment of its own brand products on the Amazon Store.
It declined to comment on Thursday.
In its compliance report published in March, the firm said its ranking models do not differentiate on whether the product is sold by Amazon Retail or a Seller or whether it is an Amazon product or a third-party product.
According to one of the persons, Ribera, not Vestager, will determine the results of the current DMA investigation into Apple (AAPL.O), Alphabet (GOOGL.O), Google, and Meta Platforms (META.O).
