Amazon under investigation over listings practices

Amazon is under investigation in the UK over concerns that the company is giving an unfair advantage to certain sellers on its marketplace.

The markets watchdog said that Amazon's practices may be anti-competitive and leading to worse deals for customers.

It follows a similar probe launched by the European Commission in May.

Like the European case, the UK's investigation will centre on how Amazon decides which products are given preferential listing spots.

The online retail giant not only hosts the marketplace where independent businesses can advertise their products, but it also sells its own products there too.

According to the Competition and Markets Authority (CMA), Amazon may be giving preference to its own retail business and disadvantaging third party sellers.

The regulator also said that for a fee, Amazon offers services to these independent businesses - including storage, packaging, and delivery - and may be giving an unfair advantage to the sellers that purchase these services.

Sarah Cardell, General Counsel at the CMA, said: "Millions of people across the UK rely on Amazon's services for fast delivery of all types of products at the click of a button."

"This is an important area so it's right that we carefully investigate whether Amazon is using third-party data to give an unfair boost to its own retail business and whether it favours sellers who use its logistics and delivery services - both of which could weaken competition," Ms Cardell said.

Thousands of UK businesses use Amazon to sell their products, she added.

"Any loss of competition is a loss to consumers and could lead to them paying more for products, being offered lower quality items or having less choice."