The German Federal Cartel Office (Bundeskartellamt) has issued a formal statement of objections to Amazon, raising serious concerns over the tech giant’s use of algorithm-driven price control mechanisms that allegedly suppress competition on its marketplace platform.
In its preliminary legal assessment, the authority concluded that Amazon’s pricing policies — which prevent third-party sellers on the Amazon.de Marketplace from exceeding certain price thresholds — may violate both German and EU competition laws. The conduct could constitute an abuse of market power under Section 19a(2) and Section 19 of the German Competition Act (GWB) and Article 102 of the Treaty on the Functioning of the European Union (TFEU), which prohibit the abuse of a dominant market position.
The concerns stem from Amazon’s enforcement of so-called “Fair Pricing” policies, which use internal algorithms and statistical models to set dynamic price caps. These caps are calculated based on internal and external price comparisons and are used to determine whether a seller’s product remains visible on the platform. Sellers who breach Amazon’s pricing thresholds risk their products being removed entirely, excluded from the prominently placed “Buy Box,” or hidden from search results and advertising.
“Competition in online retail in Germany is largely determined by Amazon’s rules,” said Andreas Mundt, President of the Federal Cartel Office. “Given that Amazon competes directly with sellers on its platform, any influence it exerts on their pricing — even indirectly — raises serious antitrust concerns.”
Amazon, which commands around 60% of the German online retail market, operates both as a direct retailer (Amazon Retail) and as a host of third-party sellers (Marketplace). This dual role has led to intensified regulatory scrutiny over potential conflicts of interest and platform neutrality.
One of the main issues highlighted by the watchdog is the lack of transparency and objectivity in Amazon’s price-setting mechanisms. According to Mundt, the parameters that determine acceptable price ranges are controlled solely by Amazon and are not disclosed to sellers, leaving them with limited ability to challenge or understand the criteria behind price-related penalties.
The Cartel Office noted several competition concerns in its initial findings:
- Lack of Transparency: Price restrictions are based on opaque mechanisms, making it difficult for sellers to understand or anticipate enforcement actions.
- Market Exit Risk: Price caps that prevent sellers from covering their costs may lead to exit from the platform, reducing consumer choice.
- Coordinated Pricing Risks: Amazon’s system could inadvertently align third-party sellers’ prices with Amazon’s own pricing strategies, potentially creating a de facto uniform pricing model across the platform.
- Barrier to Price Competition: By systematically tracking and enforcing the lowest external prices, Amazon’s pricing tools could deter other retailers from undercutting prices, limiting downward price movement in the broader online retail sector.
Amazon now has the opportunity to respond to the allegations. The findings follow an extensive investigation by the authority, including a large-scale survey of marketplace sellers conducted in 2024.
This latest move builds on a 2022 decision in which the Federal Cartel Office designated Amazon as a company of “paramount cross-market significance,” placing it under special antitrust scrutiny pursuant to Section 19a of the GWB. That designation was upheld by Germany’s Federal Court of Justice in April 2024.
The investigation is being closely coordinated with the European Commission, which enforces the Digital Markets Act, and Germany’s Federal Network Agency, responsible for implementing the EU’s Platform-to-Business Regulation.
Amazon has not yet issued a public response.
