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Commissioner Margrethe Vestager, in charge of competition policy, said: "European consumers are increasingly shopping online. E-commerce has boosted retail competition and brought more choice and better prices. We need to ensure that large online platforms don't eliminate these benefits through anti-competitive behaviour. I have therefore decided to take a very close look at Amazon's business practices and its dual role as marketplace and retailer, to assess its compliance with EU competition rules.”
Amazon is based in the United States.
If anyone doesn't like the way Amazon operates, then shop elsewhere
@heisje No taxes and subsidies for everything? Where does the money come from?
What people don't realize is that Chinese manufacturers are directly subsidised by their state, rendering international competition a joke - by subsidised state electric power, subsidised state transport/shipping, zero social security payments (state fully covers health and pensions), laughable taxes if any (exemptions) and laughable state fixed wages.
Supporting the power requirements of astoundingly large data centers is no small feat. AWS is now responsible for nearly two percent of all electrical power consumption in the United States. Under secretive agreements between Amazon and energy providers, the true costs of running such massive data centers are well hidden from the public.
Amazon has been successful in negotiating special electric rates that are unavailable to other customers. While some may argue that it is just a bulk use discount, exemptions from select fees offered by utility companies combined with tax incentives offered by governments pass the costs along to regular everyday people.
In US and EU Amazon is subsidised in all sorts of sinister ways (huge tax breaks, warehousing & headquarter subsidies, land, energy)
Had a friend who had a small e-comm site in Europe, what killed his business was that, people were finding it not normal, that he was charging shipping fees, whereas Amazon had free shipping (on order over 25€)...
In a year, sellers’ based in China market share increased from 28% to 34% on Amazon.co.uk in the UK, from 26% to 28% on Amazon.de in Germany, from 41% to 47% on Amazon.fr in France, from 41% to 45% on Amazon.it in Italy, and from 48% to 52% on Amazon.es in Spain.
Why are none of these funds going to the supposed victims?
Yes, I was a victim but the attorneys made out better than any actual victim.
As for copying what others do, coming out with a competitive product, that's part and parcel of ordinary business (refinement of product offer). That's not the same as unfair ... just "I can do it better than you can..."
Yes of course in a normal business environment
But Amazon will pay the VAT to the UK