Amazon is being investigated by European Union (EU) antitrust regulators for allegedly violating the Digital Markets Act (DMA).
According to EU officials on Thursday, Amazon will likely face an EU inquiry next year regarding whether it prefers its own brand products on its online marketplace.
If Amazon is found to have violated the EU’s Digital Markets Act (DMA), which aims to curb Big Tech’s power, it could face fines of up to 10% of its global annual revenue.
Officials stated that Teresa Ribera, the newly appointed head of the EU antitrust authority, will decide on the investigation’s progress and timing in the coming months.
Ribera, a Spanish national, is set to take office next month, succeeding Margrethe Vestager.
The DMA, which took effect in 2023, prohibits six major tech companies, including Amazon, from favoring their own products and services on their platforms, among other requirements. Amazon has stated that it currently complies with the DMA and is working with the commission to implement new regulations since two of its services have been designated critical gateways between businesses and consumers.
In March, the European Commission, the EU’s antitrust enforcement agency, previously indicated that it was gathering facts and information about Amazon’s handling of its own-brand products in its store.
Amazon’s stock price dropped by 2.22%, closing at $198.38.
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