The Federal Cartel Office has prohibited Amazon from conducting price controls on its platform for third-party sellers. Specifically, Amazon had reviewed the prices of third-party sellers using internal mechanisms. Offers that Amazon considered too expensive were either removed entirely or had their visibility restricted. The affected sellers could not understand where the price limits lay or how they were set. Since Amazon itself operates as a retailer on its own platform and thus competes directly with third-party sellers, the Federal Cartel Office regards this practice as an inadmissible interference in competition. In the future, Amazon may only use these price control mechanisms in exceptional cases, particularly in cases of price gouging. The decision strengthens the independence of third-party sellers on Amazon by allowing them to set their prices freely without regulatory intervention from Amazon. This measure could increase market transparency and invigorate competition on the platform.
What do sellers & vendors need to consider?
Strengthening freedom of competition: The aim of the ban is to strengthen freedom of competition through more flexible pricing by third-party sellers. This gives sellers new strategic freedom when setting prices.
Implementation details remain to be seen: The fact is, as of today, nothing has changed yet. Nevertheless, it is of course important that we inform you about this ruling.
Intensify market monitoring: With the elimination of price controls, third-party sellers can respond more agilely to market changes. It is advisable to continuously monitor the market and adjust pricing strategies flexibly.
