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Amazon's business model is in the spotlight in Europe after the EU's anti-trust monitoring agency has launched a preliminary investigation into how the platform is using merchant data.
Margrethe Vestager, European Commissioner for Competition, said on Wednesday that this informal survey concerns the dual role of the e-commerce group as a competitor, but also that of third-party merchants who sell products on Amazon's sites.
The decision was taken the same day that Brussels decided that an agreement between McDonald's and Luxembourg, which allowed the fast food group to pay virtually no tax on its European royalties both in the EU and the United States , did not violate the laws of the Union.
In the case of Amazon, the commission sent questionnaires to merchants this week to gather information. The action was not motivated by a complaint, but was initiated on the basis of the Commission's market observations and the results of its investigation into the e-commerce sector completed in 2017.
The Amazon site sells its own products as well as those of other companies. Its market activities list the products of third-party sellers on its websites, alongside the company's products. Independent sellers may choose to use all or part of the platform's fulfillment, payment and advertising services.
More than half of global companies sell their products to the Amazon market, and European companies have used the service to export more than 5 billion euros worth of products last year, according to the company's figures.
Last year, for the first time, more than half of all items sold on Amazon came from third-party merchants, CEO Jeff Bezos told shareholders this year.
Amazon generates revenue for the services it provides, but also benefits because third-party vendors increase the selection and range of products available on Amazon's Web sites. Independent sellers can expand their reach and start selling online with a limited upfront investment.
Although EU officials have pointed out that there was not a formal investigation, the action indicates that the commission has concerns.
The questionnaires will be returned within the next two months, after which EU officials will determine their next steps, if any.
Amazon declined to comment. In the past, the company has downplayed antitrust concerns, noting that it competes in large markets with multiple competitors and that online sales represent only a small fraction of the overall retail market.
At an event in Washington last week, Mr Bezos said he was not concerned about the increasing control of the company.
"All major institutions of all kinds will and should be controlled," he said. "We are so inventive that whatever regulations are promulgated will not prevent us from serving our customers."
According to a voluntary transparency registry, Amazon has spent up to 2 million euros lobbying in Brussels in 2017, significantly less than the $ 13 million spent on US lobbying last year, according to a the Center for Responsive Politics.
The European register shows that Amazon has 10 collaborators working on European policy issues. In comparison, Google has 14 people involved in politics and spent up to 5.5 million euros last year, the largest number of US technology companies.
In the United States, Amazon has assembled the largest lobbying team of all technology companies in Washington, which has expanded into new business, including grocery, advertising and health care, and has been attacked by President Donald Trump. It has doubled its number of internal lobbyists to 28 this year, up from 14 before Trump's election, according to data compiled by the FT.
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