Amazon reaches deal with Germany’s anti-trust authority to overhaul its terms of service for third-party merchants by Busvine
Germany’s anti-trust regulator, while subordinate to Brussels in many regards, has also been active, ordering Facebook to change how it handles user data after finding the social network abused its market dominance.
At issue is the power of so-called platform companies that provide a venue for others, for example, to sell new or second-hand books. In an inherent conflict of interest, that business has also long been a mainstay of Amazon, which was founded by Jeff Bezos in his garage in 1994 and has gone on to command a market valuation of nearly $1 trillion.
It should now give 30 days notice, and a reason for, removing a merchant from its platform. Before, it could end its relationship with, or block, a seller without warning or explanation. They will also be able to appeal against decisions by Amazon regarding who should bear the costs of returns and refunds. Other changes cover product descriptions, ease of understanding Amazon’s terms of services and fairer presentation of customer reviews, the cartel office said.
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