Amazon ordered to repay €59 million by German regulator over third-party seller pricing controls

The regulator concluded that Amazon’s price control mechanisms applied to third-party sellers on the German marketplace constituted an abuse of market power under both national and EU competition rules. Amazon has announced it will appeal the decision, arguing that the German approach conflicts with EU competition law. The company was advised by Hengeler Mueller.

A dominant marketplace position

According to the Bundeskartellamt, Amazon accounts for roughly 60% of online retail sales of goods in Germany, giving the company significant influence over pricing dynamics in the e-commerce sector. The amazon.de ecosystem combines Amazon’s own retail operations (“Amazon Retail”) with its third-party marketplace (“Amazon Marketplace”), where independent sellers are responsible for setting their own prices and bearing commercial risk.

Approximately 60% of goods sold via the platform are offered by independent sellers, placing them in direct competition with Amazon’s own retail business.

Andreas Mundt, President of the Bundeskartellamt, emphasized the competition concerns raised by this dual role:

“Amazon directly competes with the other Marketplace sellers on its platform. Influencing competitors’ pricing is only permissible in very exceptional circumstances.”

Price control mechanisms under scrutiny

The investigation focused on algorithmic price control mechanisms used by Amazon to assess whether marketplace offers were priced too high. When offers were flagged, Amazon could remove them from the marketplace entirely or reduce their visibility by excluding them from the “Buy Box,” a key driver of sales.

The authority found that restricting visibility in this way could significantly reduce sellers’ turnover and potentially force them out of the marketplace. It also criticized the lack of transparency surrounding the pricing rules, noting that sellers could not predict when their offers might be downgraded or removed.

While the regulator acknowledged Amazon’s objective of maintaining competitive prices for consumers, it concluded that less restrictive alternatives exist, such as adjusting commission structures or providing financial incentives to sellers.

Legal basis and coordination with EU authorities

The Bundeskartellamt considers the conduct to be an abuse of market power under Section 19a of the German Competition Act (GWB), the general abuse provisions of German law, and Article 102 of the Treaty on the Functioning of the European Union.

The case reflects increasing coordination between national competition authorities and EU regulators in the digital economy. During the investigation, the German authority worked closely with:

• the European Commission, responsible for enforcing the Digital Markets Act (DMA), and

• the Bundesnetzagentur, which oversees the Platform-to-Business Regulation.

The decision also imposes future restrictions on Amazon’s use of pricing controls, allowing them only in exceptional situations, such as excessive pricing, and subject to clear transparency requirements.

Appeal expected

The ruling is not yet final. Amazon has one month to appeal, in which case the matter will be reviewed by the German Federal Court of Justice.

The case highlights the growing willingness of European competition authorities to intervene in platform governance practices, particularly where marketplace operators simultaneously compete with independent sellers. It also signals increased enforcement against algorithmic pricing controls and platform-driven visibility restrictions, which regulators increasingly view as potential tools of market foreclosure in digital ecosystems.

Sophie Stevenard

Image: © Dimitar DILKOFF / AFP / Carta Capital