FRANKFURT (Reuters) – Amazon has reached a deal with the German anti-trust authority to revise the terms and conditions of service for third-party merchants, who had complained about the unfair treatment of the sale by means of the world’s largest online retailer.
FILE PHOTO: The logo of Amazon is seen at the company’s distribution centre in Boves, France, on May 13, 2019 at the latest. REUTERS/Pascal Rossignol/File Photo
The German federal cartel office, said on Wednesday it was dropping to a seven-month investigation, after the end of the e-commerce giant agreed to amend the Service Agreement that is applicable to merchants using its platform.
It added that the changes are to take effect in 30 days, it would apply not only to Germany’s, Amazon’s, No. 2 out of the market, behind the United States, as well as to the country of the sites in great Britain, France, germany, Italy, and Spain, as well as in south America and Asia.”
“We have achieved significant improvements for the retailers on Amazon’s marketplace,” German federal cartel office chief Andreas Mundt said in a statement. “We’ll have it to you soon.”
Responding to Amazon, it said the changes to the Business Solutions Agreement to clarify the rights and obligations of the sale to the partners, who are responsible for 58% of the physical sales of the merchandise on its platform.
“We will continue to work hard, invest, and invent new tools and services to assist in the sales of our partners around the world to reach new customers and grow their business,” according to Amazon.
PLATFORMS, US REGULATORS
Silicon Valley’s tech giants are coming under more and more intensive surveillance in Europe, with the letters of the Alphabet, from the Google-hit-with billions of dollars of fines for infringements of the competition rules in the European Union.
Germany’s anti-trust regulator, while its subsidiary in Brussels and in many regards, has also been active, and the order of the Facebook to change how it handles the data it is found on the social network, misused its dominant position on the market.
Facebook has appealed the decision, and in contrast to Amazon, which was a relatively short relationship with the German regulator. No penalties were provided for in Amazon’s case).
At issue is the effect of the so-called platform companies that offer a location for others to have, for example, is to sell either new or second-hand books. In an inherent conflict of interest, that is, it is also a long-time staple of the Amazon, founded by Jeff Bezos in his garage in 1994 and has gone on to command a market value of close to $1 billion.
Third-party vendors had been complaining that Amazon is one of the general terms and conditions of service that were stacked against them, it’s a point of view which is supported by the German federal cartel office, which found that the Amazon be treated with an opaque and arbitrary.
THE NEW TERMS AND CONDITIONS
Among the changes, the new terms of service, Amazon will have to comply with the Eu rules on liability in the direction of its business, parties involved in the European platform, whereas previously faced no liability.
It should now give a prior notice of 30 days and a rationale for the removal of a merchant from the netherlands. It would be the end of her relationship with you, or to block a seller, all without any notice or explanation.
The traders, by means of the European countries may, in certain circumstances, to take Amazon to court in their own country, whereas in the past, this was possible only in Luxembourg, is a deterrent for small traders.
They will also be able to appeal against decisions made by Amazon regarding who should bear the costs of return shipments and refunds. Other changes are the product descriptions, the ease of understanding of Amazon’s terms of service and fair presentation of the reviews of the customers of the cartel, the office said.
The changes will have a direct impact on over 300,000 traders are active on the Amazon.de the company’s German site, which is estimated to be 60%-65% is in English. The site, which turned out to be more than 20 billion euros in the previous year, making it by far the largest of the Amazon’s European stores.
The German federal cartel office said that it had been in close co-operation with the European Commission on its probe, as well as with the supervisory authorities in Austria and Luxembourg, which have also opened an anti-trust suit against Amazon.
Reporting by Douglas Busvine; Editing by Chris Reese