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This landmark order is the first by which the Indian competition watchdog has, contrary to former practice, delved into an issue such as privacy, which ordinarily falls under other areas of law, such as constitutional law. The CCI formed a preliminary view that the ‘take it or leave it’ nature of WhatsApp’s updated privacy policy and terms of service appears to be an abuse of dominance and, as such, violates the Competition Act 2002 (‘Competition Act’). This was a result of WhatsApp’s recent notification to its users of changes in its privacy policy and terms of services, which allowed WhatsApp to share user data with its parent company Facebook. The scrutiny included analysis of “large volumes of internal documents” from the two companies.On March 24, 2021, the Competition Commission of India (‘CCI’) took suo moto cognizance and launched an investigation against WhatsApp and Facebook (‘Investigation Order’). The CMA spent much of 2020 closely scrutinising Amazon as part of its investigation into its investment in food courier platform Deliveroo. ”These are two reasons why they win the buy box, but none of the reasons are unfair – especially for the customer,” he added. Also Amazon logistics are often cheaper for the merchant, which allows them to make cheaper offers. Since Amazon logistics meet the highest standard, they are often the winner. Everything else would work against their mantra of ‘customer first’. “Amazon wants to get the merchant with the best performance and a competitive price in the buy box.
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That doesn’t mean you can’t achieve similar scores if you’re not part of the system but it needs a same level of service quality,” Zündorf said. Orders which are fulfilled by Amazon normally hit the highest score possible in that category since they are fully integrated. Some of them are regarding logistics like delivery time, time to response and punctuality. “Amazon has several performance indicators which influence if a merchant is shown in the buy box. Nils Zündorf, e-commerce expert and MD of Europe’s largest Amazon agency Factor-a, told The Grocer Amazon was fair in determining ‘buy box’ featured vendors. In a US antitrust hearing last summer, Amazon CEO Jeff Bezos said the company had “a policy against using seller-specific data, but I can’t guarantee you that policy has never been violated”. In January Amazon sued the EU for allowing the Italian Competition Authority to pursue its own case, arguing it should be wrapped into the EU investigation. Several European competition authorities have also been looking into Amazon’s practices. Its rules should not artificially favour Amazon’s own retail offers or advantage the offers of retailers using Amazon’s logistics and delivery services,” she added.Īmazon said it disagreed with the Commission’s allegations. “The conditions of competition on the Amazon platform must also be fair. Data on the activity of third-party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers,” the Commission’s executive VP Margrethe Vestager, in charge of competition policy, said at the time.
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“We must ensure dual-role platforms with market power, such as Amazon, do not distort competition. The European Commission is currently investigating Amazon on the same grounds, having informed the company in November it had breached EU antitrust rules. “The CMA cannot speculate as to which cases it may or may not investigate,” a CMA spokeswoman told The Grocer today. Part of the investigation will be focused on whether Amazon favours merchants that use the e-commerce giant’s own logistics and delivery services when determining which sellers are featured in the site’s ‘buy box’, according to the report, which cited three people with direct knowledge of the plans. The Financial Times on Thursday reported the competition watchdog was planning a formal investigation into Amazon and had been analysing the e-commerce giant’s business “for months”. The Competition & Markets Authority has said it “cannot speculate” on the likelihood of an investigation into Amazon and its use of marketplace seller data. Lumina Intelligence: UK Food & Drink Reports.
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