Bonn, 2 June 2025 — The German Federal Cartel Office (Bundeskartellamt) has issued a preliminary legal assessment raising serious concerns about Amazon’s use of price control mechanisms on its marketplace platform, warning that such practices may breach German and EU competition law.
The authority’s concerns focus on Amazon’s Marketplace Fair Pricing Policy, under which sellers must not exceed price limits set by Amazon. If a seller’s prices are deemed too high, their listings may be hidden from search results, excluded from the Buy Box, or removed altogether — actions that significantly affect a seller’s visibility and ability to compete.
According to the Bundeskartellamt, Amazon’s lack of transparency and unilateral control over these price caps gives it undue influence over third-party sellers, many of whom compete directly with Amazon’s own retail business. President Andreas Mundt described this conduct as “inherently problematic” and warned that it could distort online competition and force sellers off the platform if they cannot operate profitably under Amazon’s pricing constraints.
“Competition in Germany’s online retail trade is largely determined by the rules Amazon sets for its trading platform,” said Mundt. “Influencing its competitors’ pricing, including in the form of price caps, is particularly concerning when it puts sellers at risk of financial loss or market exit.”
The Bundeskartellamt believes these practices could violate Section 19a(2) of the German Competition Act (GWB), which provides stricter rules for large digital platforms, as well as general abuse of dominance rules under both German law (Section 19 GWB) and Article 102 of the TFEU.
Key Concerns Identified:
- Lack of transparency: Amazon’s dynamic price caps are based on undisclosed criteria, leaving sellers in the dark about how their prices are evaluated.
- Erosion of pricing freedom: Sellers may be unable to set prices that cover their costs, threatening their viability on the platform.
- Market distortion: Amazon’s control may lead to a uniform pricing strategy that discourages competitive pricing across online retailers.
- Self-preferencing risk: As both a retailer and a platform operator, Amazon may be using its pricing policy to favour its own offerings.
The preliminary assessment follows extensive investigation, including a large-scale seller survey, and is part of proceedings launched in November 2022, shortly after Amazon was officially classified as having paramount significance across markets — a designation confirmed by the German Federal Court of Justice in 2024.
Amazon now has the opportunity to respond to the allegations before a final decision is made. The Bundeskartellamt is coordinating its work with the European Commission, which enforces the Digital Markets Act, and Germany’s Federal Network Agency, which oversees platform-to-business practices.
This case is likely to become a major test of Europe’s ability to regulate digital gatekeepers and ensure fair competition in online commerce.
Source: https://www.bundeskartellamt.de/SharedDocs/Meldung/EN/Pressemitteilungen/2025/2025_06_02_Amazon.html
