Federal Cartel Office is reviewing Amazon's pricing strategies: pressure on retailers is growing!

Federal Cartel Office is reviewing Amazon's pricing strategies: pressure on retailers is growing!

On June 2, 2025, Amazon will be the focus of the German Federal Cartel Office. The competition authority is investigating pricing on the marketplace as retailers report opaque requirements that greatly influence the visibility of their offers. The review is being carried out because of suspicions that Amazon may be violating competition law. Smaller retailers are particularly affected by these practices and are coming under increasing pressure.

The Federal Cartel Office has determined that Amazon, which accounts for around 60% of sales in German online retail, is active as a platform in both proprietary trading and as a marketplace operator. The authority has already published a preliminary legal assessment on pricing, which indicates that retailers must not exceed price limits set by Amazon. Therefore, there could be possible abuse according to Section 19a Paragraph 2 GWB and a violation of Section 19 GWB and Article 102 TFEU reports the federal authority.

Price pressure and algorithmic control

Internally, Amazon sets price caps that retailers must adhere to in order to offer their products visibly. Offers that exceed these price limits not only disappear from the so-called “Buy Box”, but often also from the search results. In serious cases, the offers may even be removed entirely. This puts retailers at a disadvantage as they charge higher prices and may therefore no longer be able to cover their costs points out oe24.

According to the Federal Cartel Office's assessment, the price limits are not transparent and are at Amazon's discretion. In such cases, merchants will receive notifications to adjust their prices, taking into account reference prices deemed appropriate. This could significantly limit the competitive process in the marketplace and put pressure on all online commerce, meaning that consumers and suppliers outside of Amazon could have difficulty competing with competitive prices.

Amazon's market position and its effects

Amazon also acts as a seller on its own marketplace, which leads to a potential conflict of interest. The platform's behavior could strengthen Amazon's market position and squeeze out smaller providers, which could ultimately lead to the withdrawal or failure of these retailers. This makes it more difficult for consumers to choose from a broad portfolio of products adds Statista.

The Federal Cartel Office's decision to examine Amazon more intensively is no coincidence. As early as July 2022, the authority determined that Amazon has outstanding cross-market importance and is subject to expanded abuse supervision. This decision was confirmed by the Federal Court of Justice in April 2024. Now it remains to be seen how Amazon will respond to the allegations and what further steps the authority will take.