Amazon Faced With Antitrust Investigation by the EU
Beware if giants like iBooks can be questioned by the European Union, then any other company be it large or small can be. According to the Associate Press the European Union has initiated an antitrust investigation against Amazon.
The retail e-book distributor has gained immense popularity and monopoly over the e-book distribution. On Thursday the European Commission said that they will look into the clauses that revolve around the contracts involving publishers and Amazon.
All publishers involved in a contract with Amazon will be required to present all kinds of agreements that they have with the company’s competitors. It has the largest distribution in Europe and has become increasing popular over the years.
Amazon owns Kindle which is a popular e-book device and app available on mobile phones and tablets. The company is already facing a lot of pressure from the tax commission especially if the company has any sort of competitive advantage because of its low-cost structure based in Luxembourg.
EU’s Officer Margrethe Vestager says that although the commission does not necessarily need to bring the company in for question.
“However, it is my duty to make sure that Amazon’s arrangements with publishers are not harmful to consumers, by preventing other e-book distributors from innovating and competing effectively with Amazon. Our investigation will show if such concerns are justified.”
When the company was asked about the issues regarding cutting competition and violating any sort of contracts they clearly said that the company will cooperate completely and everything is in the best of the consumers’ interest.