9/19/2018, 4:41 PM (Source: TeleTrader)
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EU launches probe into Amazon's use of data

European Union's Competition Commissioner Margrethe Vestager said on Wednesday the union started a preliminary investigation to determine how Amazon is using the data collected from hosting other retailers. Amazon sells its own, as well as third-party merchandise on its website, which puts the company in a position to use the data collected to give itself a competitive advantage.

Vestager said the investigation was started because of the results of its e-commerce sector inquiry and not because of a complaint. Regulators have sent questionnaires to companies that sell on Amazon to gather information on its "dual purpose" as a retailer and a host. The e-commerce giant is one of the companies that have been under scrutiny in the EU, having already been fined €250 million after an investigation found it made an agreement with Luxembourg that allowed it to minimize the amount of taxes it paid.

Vestager, who was also heading a three-year probe into Luxembourg's tax treatment of McDonald's, closed the investigation today after concluding the country did not provide the fast food company with illegal state aid.

Amazon was trading 1.42% in the red at 4:31 pm CET.

Breaking the News / MD