EU fines in the millions?: Amazon shares won: British competition officials clearly want to take a look at Amazon | message

British supervisory authority CMA (Competition and Markets Authority) has been looking into the use of data collected on the tech company’s platform for months and is now planning a formal process, among other things, because of the potential preference given to certain dealers. is. The Financial Times” (“FT”) cited several knowledgeable people on Thursday. This could mean that Amazon may recommend such retailers on the platform to buyers who also use Amazon’s logistics services. The timing and scope of the process is still a work in progress.

The EU antitrust watchdog in Brussels in November accused Amazon of systematically using non-public trade data from independent retailers for its own retail business. Amazon provides goods not only for its own account on its trading platform, but also for third parties who use the online catalog for their sales. The European Union had already started the investigation in July 2019. Both CMA and Amazon did not want “FT” to comment on the information.

Apparently Amazon fears a $425 million EU fine

Amazon.com could be fined more than $425 million for using customer data in the EU. According to informed sources, the Luxembourg Data Protection Commission (CNPD) has drafted the same decision and forwarded it to 26 other national data protection authorities in the European Union. Since Amazon’s EU headquarters are in the Grand Duchy, the CNPD is the main custodian of data protection issues for the group in the European Union.

People familiar with the matter said it would be the biggest ever fine for data protection breaches in the EU. According to an informant, it is about an alleged breach by Amazon in the collection and use of personal data against the European General Data Protection Regulation. On the other hand, this matter has nothing to do with Amazon Web Services, the cloud computing business. The person did not want to elaborate on the specific allegations against Amazon.

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An Amazon spokesperson declined to comment. The group previously said that protecting the privacy of its customers is a priority and that it complies with the law in every country in which it operates. Customers take priority and it complies with the law in each country it operates in. A CNPD spokesperson said the commission was not allowed to comment on individual matters. For the CNPD’s draft to take effect, it must be ratified by other EU data protection authorities, a process that could take months and lead to substantial changes.

The penalty proposed by Luxembourg would be around 2 percent of Amazon’s net profit and 0.1 percent of sales for 2020. According to the General Data Protection Regulation, a penalty of up to 4 per cent of the annual turnover of the company can be imposed.

According to another person familiar with the matter, the Luxembourg regulator has already received some objections to its draft decision, including at least demanding a higher fine. The CNPD may try an amicable solution, with observers voting if necessary.

Ultimately, Amazon shares rose 2.09 percent to $3,349.65 in NASDAQ trading.

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London (DPA-AFX) / Paris (Dow Jones)

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About the Author: Forrest Morton

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