The European commission has launched a competition inquiry into Amazon’s dominant market position in ebooks, as Brussels steps up its scrutiny of US tech groups. The EU’s executive branch is looking at clauses in contracts between Amazon and publishing houses that restrict publishers from offering better terms to the online retailer’s competitors. The clauses sometimes require publishers to disclose to Amazon the terms offered to rival retailers.
The European commission has launched a competition inquiry into Amazon’s dominant market position in ebooks.
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“Amazon has developed a successful business that offers consumers a comprehensive service, including for ebooks,” said the EC’s competition commissioner, Margrethe Vestager. “Our investigation does not call that into question. However, it is my duty to make sure that Amazon’s arrangements with publishers are not harmful to consumers, by preventing other ebook distributors from innovating and competing effectively with Amazon. Our investigation will show if such concerns are justified.”
The inquiry will focus on English and German ebooks, which are the largest markets across Europe. Amazon also produces the popular Kindle e-reader.
However, Amazon said it was confident that its agreements with publishers were legal and in the best interests of readers. “We look forward to demonstrating this to the commission as we cooperate fully during this process,” it said.
