The German Federal Cartel Office is reportedly investigating e-commerce giant Amazon over allegations that the firm abused its market position during the Wuhan coronavirus pandemic. The German government is specifically focusing on Amazon’s treatment of third-party sellers on the platform.
CNBC reports that e-commerce giant Amazon is being investigated by German authorities for allegedly abusing its market position during the peak of the Wuhan coronavirus pandemic. The investigation is being led by the German Federal Cartel Office and is examining Amazon’s relationship with third-party sellers on its platform. The investigation launched in April after the Cartel Office received a number of complaints.
A spokesperson for the German watchdog told CNBC that it is “not up to a private platform to be a price regulator or the price police,” and that Amazon is using “unknown mechanisms” to regulate sellers on its platform. Amazon did not respond to CNBC’s request for comment bu stated in a March 23 blog post that price gouging had “no place” on its platform.
The investigation was first reported by German newspaper Frankfurter Allgemeine Zeitwung. Cartel OFfice president Andreas Mundt told the paper: “We are currently investigating whether and how Amazon influences retailers’ pricing on the marketplace.”
The investigation comes shortly after Amazon blocked some retailers for allegedly inflating the prices of certain products at the peak of the Wuhan coronavirus pandemic. There were numerous cases of third-party Amazon sellers increasing the prices of items such as hand sanitizers and face masks.
Amazon has faced a number of scandals during the pandemic, in June warehouse workers in Germany went on strike after staff at several logistics centers tested positive for the virus. The strikes took place at six of the firm’s warehouses across the country over two days, German labor union Verdi said at the time that Amazon was endangering the lives of its workers.
An Amazon spokesperson commented at the time: “We believe strongly our associates are not spreading the virus at work given the robust safety measures we’ve put into place. Unlike others, anytime there is a confirmed diagnosis we alert every person at the site. Employees receive a direct message noting when the person with the confirmed diagnosis was last in the building.”
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address lucasnolan@protonmail.com
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