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WORLD NEWS Thursday 18 July 2019

With Big Tech's dominance under scrutiny, EU probes Amazon

By CARLO PIOVANO consumers and innovation,
RAF CASERT but also whether they are
BRUSSELS (AP) — While the adequately protecting us-
U.S. Congress talks about ers' data and paying their
reining in big tech compa- fair share of taxes in coun-
nies, Europe is taking ac- tries where they operate.
tion. U.S. authorities have start-
The European Union said ed to follow Europe's lead
Wednesday it is investigat- in taking a closer look at
ing whether Amazon uses the big tech companies,
data from independent particularly after the scan-
retailers to gain an unfair dal in which Facebook was
advantage, a decision that found to have allowed
could lead to changes in data on millions of people
how the internet's biggest to be used by other com-
marketplace works. panies, including to try to
The move echoes similar influence the 2016 election
antitrust actions against that made Donald Trump
Google and Microsoft that the new U.S. president. Ac-
have led to billions in fines. It European Commissioner for Competition Margrethe Vestager, center, speaks with European cording to published re-
also contrasts with U.S. law- Commissioner for Economic and Financial Affairs Pierre Moscovici, second left, and European ports, U.S. regulators are
Commissioner for Migration and Home Affairs Dimitris Avramopoulos, left, during the weekly col-
makers' slower approach lege meeting at EU headquarters in Brussels, Wednesday, July 3, 2019. poised to fine Facebook $5
to the issue, as they start Associated Press billion for that scandal, but
discussing how to curb the the wider debate of reining
growing power of the tech seller of an item that a cus- During Tuesday's hear- tor raised concerns about in tech companies' powers
industry's titans. A Tuesday tomer wants to buy. ing before a House panel, some terms. The case is not has only just begun.
hearing in Washington The EU opened a prelimi- Amazon associate general like the EU's probe about The House Judiciary Com-
looked into whether the nary probe into the issue counsel Nate Sutton said data on traders, but about mittee in the U.S. is investi-
companies' business prac- last year, and Vestager said Amazon has an incentive contractual terms such as a gating the market power
tices run afoul of century- it has shown that "Amazon to keep third-party sellers one-sided exemption from of Facebook, Google,
old laws originally designed appears to use competi- strong because they make liability to Amazon's benefit Amazon and Apple. Con-
to combat railroad and oil tively sensitive information - up nearly 60% of unit sales as well as the place of juris- gress also held two days
monopolies. Any U.S. ac- about marketplace sellers, for Amazon and are grow- diction for disputes. of hearings this week on
tion is still a long time away. their products and transac- ing twice as fast as Ama- Other EU countries like Aus- Facebook's plan to create
The EU's antitrust chief, Mar- tions on the marketplace." zon's own retail operations. tria, Luxembourg and Italy a digital currency, Libra,
grethe Vestager, said she's The investigation could Under questioning, Sutton are also independently which governments in the
taking a "very close look" at lead to fines and eventually insisted that Amazon uses investigating Amazon but U.S. and Europe have been
Amazon's dual role as mar- cause Amazon to change data to serve customers EU spokeswoman Lucia skeptical about.
ketplace and retailer. the way it works. Previous but not to directly com- Caudet said the national In Europe, one of the big
In addition to selling its own EU antitrust cases have pete with them. His remarks probes did not overlap with questions is how to tax
products, Amazon allows resulted in such change, echoed executive Jeff the EU investigation. these companies, which
third-party retailers to sell though it is unclear how Wilke's insistence in June The EU's investigations into do huge business across
their goods through its site. big their ultimate impact that no one inside Amazon major companies like Ama- the continent but pay taxes
Last year, more than half of has been in addressing the shares seller data to create zon have led the way in a only in the EU nation where
the items sold on Amazon EU's concerns. For example, competing Amazon pri- global push to more tightly their local headquarters
worldwide were from third- Google had to tweak the vate-label products, such regulate tech giants, as are based, often a low-tax
party sellers. display of search results, as Solimo paper towels and many governments won- haven like Luxembourg or
In doing so, Amazon col- which the EU had said fa- Amazon Basics batteries. der if they are becoming the Netherlands. The result
lects data about activity vored Google goods and In a parallel but separate too big for the good of the is they pay a far lower tax
on its platform that, the EU services. case, Germany's competi- wider economy. rate than traditional busi-
says, it might be able to use Amazon said it "will cooper- tion regulator said Wednes- Among the key questions nesses.
to favor its own products ate fully with the European day that Amazon was are not only whether the France has tried to address
for sale. In particular, the Commission and continue changing some of its busi- tech giants abuse their the problem by unilaterally
EU will look at how Amazon working hard to support ness conditions for traders market dominance to proposing a 3% tax on big
determines which trader businesses of all sizes and on its online marketplace choke off competition, po- tech companies' revenue
is selected as the default help them grow." worldwide after the regula- tentially stifling choice for in the country.q