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Amazon's Business Practices Under Scrutiny in US States

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 13 June 2020.

Published on June 13, 2020, reports indicate that state investigators in California and Washington are scrutinizing Amazon's business practices, focusing on how the e-commerce giant treats sellers in its online marketplace.

According to the Wall Street Journal and the New York Times, the inquiries in California are centered on Amazon's sales of its own products in competition with third-party vendors. Amazon has maintained that its in-house products account for only about 1% of its total annual retail sales.

Washington state is also investigating whether Amazon makes it harder for sellers to list their products on other websites, the NYT reported. The investigations, while not in advanced stages, have raised concerns about Amazon's dual role as a marketplace and a rival.

Amazon is already facing an investigation by the European Commission over its business practices, and may face EU antitrust charges in the coming weeks over its use of data on merchants with whom it competes on its platform.

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