Competition Bureau advances investigation of Amazon's Marketplace Fair Pricing Policy Français
The Bureau is investigating the Amazon Marketplace Fair Pricing Policy. The policy allows Amazon to penalize sellers for certain conduct, including if they set a price for a product on Amazon.ca that is significantly higher than recent prices offered on Amazon or elsewhere. The Bureau is seeking to determine whether the purpose or effect of the policy is to:
allow Amazon to charge higher fees to sellers than it otherwise would, and whether this in turn causes sellers to charge higher retail prices to customers;
prevent the entry or expansion of existing or potential rivals by preventing sellers from offering lower prices elsewhere than they do on Amazon; or
lessen price competition among online marketplaces or retail channels.
The Bureau has obtained a court order from the Federal Court that requires Amazon to produce records and information relevant to the investigation.
There is no conclusion of wrongdoing at this time.
Quick facts
Online marketplaces are e-commerce platforms that allow consumers to purchase products from both third-party sellers and, in certain cases, the platform itself. Third-party sellers typically pay a commission or other selling fees to use the platform.
In November 2017, Amazon instituted the Amazon Marketplace Fair Pricing Policy, which sellers must agree to as a condition of selling on Amazon.ca.
This investigation focuses on a potential abuse of dominance and is distinct from the Bureau's investigation into Amazon's marketing practices.
Associated links
Abuse of dominance
Abuse of Dominance Enforcement Guidelines
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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.
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