The Competition and Markets Authority (CMA) has officially accepted binding commitments offered by Amazon, signalling the closure of its investigation into the e-commerce giant’s practices on its Marketplace platform in the United Kingdom.

This decision comes after months of scrutiny and analysis by the CMA regarding Amazon’s use of third-party seller data, product placement within the ‘Buy Box,’ and negotiation of delivery rates for Prime orders.

The investigation, launched on July 5, 2022, under Chapter II of the Competition Act 1998, was aimed at uncovering suspected breaches of competition law by Amazon. The concerns revolved around how Amazon utilised commercially sensitive data from third-party sellers to gain an unfair advantage in its retail business. This included making crucial decisions related to product offerings, stock management, pricing, and other vital commercial strategies.

The CMA’s investigation also focused on the preferential treatment of certain product offers within Amazon’s ‘Buy Box,’ with concerns that third-party sellers were often at a disadvantage compared to Amazon’s own retail business or third-party sellers using Amazon’s delivery services.

Furthermore, the investigation delved into the negotiation of rates for Prime delivery services, which now, thanks to the CMA’s efforts, will allow third-party businesses on Amazon’s Marketplace to directly negotiate their rates with independent Prime delivery providers. This change is expected to benefit customers by potentially lowering delivery costs.

To ensure the proper implementation and compliance with these commitments, Amazon has agreed to appoint an independent trustee, with the CMA playing a significant role in the trustee’s selection to ensure expertise and effectiveness.