Amazon cancels mandatory pricing terms
A number of foreign media reports, yesterday, Amazon quietly canceled a clause in the agreement with the seller, no longer require third-party sellers to sell products on Amazon lower than the price of the same products sold in other channels. Critics say the clause is anti-competitive.
Price parity agreement, or MFNs, have been used by Amazon in contracts with third-party sellers to ensure that sellers selling products on the platform will not be on any other platform, such as eBay or Alibaba. Sell the same product at a lower price.
Amazon confirmed this policy change, but declined to comment.
US authorities will continue to crack down on monopolistic behavior
A few years ago, German and British regulators investigated this practice, and monitoring threats or upcoming investigations may be the reason why Amazon has abandoned MFNs in the United States. In December last year, Senator Richard Blumenthal sent a letter to the US Department of Justice and the Federal Trade Commission, requesting an investigation into these anti-competition clauses in the Amazon contract. Investigate how they affect the price consumers pay for goods.
“Either in the short or long term, Amazon’s price-balanced terms may increase consumer prices,” he wrote in the letter. “It’s related to the fact that Amazon’s price-balancing provisions may prevent more efficient electricity. With the advent of business platforms, these platforms may offer consumers lower prices.”
On Monday, Blumenthal said in a statement: “Amazon made this sensible and popular decision after vigorously promoting and paying attention to the contract terms that forced Amazon to abandon abuse. I am still deeply disturbed by the responsibility. Federal regulators fighting anti-competitive behavior seem to be negligent, causing huge losses to US innovation and consumers.”
“The US Department of `Justice, the Department of `Justice, the United States, the United States, the United States, the Trade Commission, the Commission, must begin to actively investigate the potential monopolistic behavior of large technology companies, and take necessary enforcement actions to curb more harmful behavior,” Blumenthal said. .