AMAZON INVESTIGATED: CEO OF RIVAL MARKETPLACE COMMENTS ON INDUSTRY ISSUE

Amazon is subject to an investigation by the antitrust Competition and Markets Authority (CMA) watchdog over concerns that some of its UK practices are anti-competitive and result in worse deals for customers. 

The investigation will assess whether the multinational is distorting competition by providing its own retail business, and sellers that share its service, with an unfair advantage over other third-party retailers.

Following news of the probe today, the CEO of the UK’s most trusted online marketplace, OnBuy, has released a statement condemning poor business practices and calling on the industry to act in the interest of consumers and retailers alike. 

Cas Paton said: “Any online marketplace that uses third-party seller data to gain an advantage over onsite retailers or favour certain sellers is, by definition, creating an unfair and unequal business environment. 

“This is not the way the industry should operate. 

“Online marketplaces should be a place where retailers and consumers come together. There is no reason why, when operated correctly, marketplaces should not offer shoppers a good deal – and sellers a lucrative platform to trade on. 

“Any business practices that actively attempt to promote the opposite by distorting competition should be condemned. 

“That’s because when competition is limited, it’s the consumers that lose out. This results in prices for products going up and, in many cases, consumers having less choice, therefore access to a lower quality of product than might otherwise be available. 

“As of today, Amazon is subject to an investigation, so it would be wrong to denounce any of their practices at this stage. However, we have faith that the CMA will do its job and get to the bottom of whatever wrongdoing, if any, was committed.”