Dec. 20 (UPI) -- Amazon has reached a settlement with the European Union that will give foreign merchants increased access to sell items on its website as part of a deal that will stave off a potentially costly antitrust investigation.
For now, the company's agreement with the European Commission brings an end to regulatory scrutiny after the global e-commerce giant was accused of using its indomitable size and reach to drive out competition throughout Europe.
Amazon's concession was seen as victory for one of the main governing bodies of the EU, which has sought to put a check on the increasing footprint of U.S. big tech giants in the region.
Tech companies have also faced more investigative scrutiny in the United States in recent months as governments around the world seek to rein in an industry that was largely unregulated before the turn of the century.
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As part of the deal, Amazon will avoid having to pay what could have been millions of dollars in penalties and fines, and the company has agreed to stop using privileged economic data that allowed its products to be prioritized above those from independent sellers.
Regulators said the back-channel information gave Amazon an unbridled leg up on pricing, revenue and inventory, as well as unfair insights into what products it should be promoting and selling.
Notably, Amazon holds the dual status of being the premier global online marketplace for small sellers while the company is also free to make its own products to compete with them. The arrangement has created a major conflict of interest and an unfair advantage for Amazon, critics say, because many small businesses are fully dependent on the platform to reach their clientele online.
In recent months, European antitrust regulators have taken aim against Microsoft, Apple, Google, and Facebook owner Meta, who was charged by the EU on Monday for alleged antitrust violations related to its marketplace service.
The companies also face pressure to modify their standing business practices by 2024 after the EU passed new laws earlier this year that seek to establish a level playing field for all traders in the digital arena. The new regulations will also force the tech giants to become more proactive in content moderation processes.
As part of its deal with the EU, Amazon has agreed to give independent sellers equal access to a highly visible button on product pages that prompts consumers to "Buy Now" or "Add to Cart." And for the first time, the company will allow independent merchants to participate in the Amazon Prime subscription service, which provides premium rewards to customers like free shipping.
The terms of the settlement are expected to stay on the books for five years, and will only be enforced in the 27 member nations of the European Union.
