Amazon and Meta Promise UK Regulators to Stop Unfairly Undercutting Rivals (theregister.com) 16
Friday the U.K.'s competition regulator made an announcement. Amazon and Meta agreed they wouldn't use data collected their marketplaces for an unfair advantage against competitors.
The Register explains: In Amazon's case, the e-commerce giant used vendors' sales figures to decide which items it should sell, and how much to price products to get an edge over everyone else. The internet behemoth also promoted its own products with its Buy Box feature and it further cut into retailers' margins by charging extra costs if they wanted to use Amazon's Prime delivery services, the CMA said. Now Amazon has committed to doing less of that.
The Competition and Markets Authority said [Amazon] will be prevented from using third-party seller data that gives it an unfair commercial advantage, and will allow rivals to negotiate rates with independent delivery contractors working on behalf of Amazon. Merchants' items will also be better supported by the Buy Box too, according to the CMA, instead of Amazon-led products or those from sellers that have bought into the company's packing and delivery services...
[Facebook] was accused of exploiting advertisers hawking wares on Facebook Marketplace, and using competitors' data to improve its own products or services. "Going forward, competitors of Facebook Marketplace that advertise on Meta platforms can 'opt out' of their data being used to improve Facebook Marketplace," the CMA said.
The CMA also has specific plans for enforcement, reports TechCrunch. for Meta the UK agency "has said it will set up a monitoring trustee to oversee its adherence, including its new technical system rollout and employee training," while Amazon will also get an "independent trustee" overseeing their compliance.
The Register explains: In Amazon's case, the e-commerce giant used vendors' sales figures to decide which items it should sell, and how much to price products to get an edge over everyone else. The internet behemoth also promoted its own products with its Buy Box feature and it further cut into retailers' margins by charging extra costs if they wanted to use Amazon's Prime delivery services, the CMA said. Now Amazon has committed to doing less of that.
The Competition and Markets Authority said [Amazon] will be prevented from using third-party seller data that gives it an unfair commercial advantage, and will allow rivals to negotiate rates with independent delivery contractors working on behalf of Amazon. Merchants' items will also be better supported by the Buy Box too, according to the CMA, instead of Amazon-led products or those from sellers that have bought into the company's packing and delivery services...
[Facebook] was accused of exploiting advertisers hawking wares on Facebook Marketplace, and using competitors' data to improve its own products or services. "Going forward, competitors of Facebook Marketplace that advertise on Meta platforms can 'opt out' of their data being used to improve Facebook Marketplace," the CMA said.
The CMA also has specific plans for enforcement, reports TechCrunch. for Meta the UK agency "has said it will set up a monitoring trustee to oversee its adherence, including its new technical system rollout and employee training," while Amazon will also get an "independent trustee" overseeing their compliance.
So they'll start "fairly undercutting" each other? (Score:2)
I guess I could see that, for instance an explicit bidding war ("Buy on Facebook Markets, $1 cheaper than on Amazon!")
Re: (Score:2)
yeah right (Score:5, Insightful)
And when they do, will the CEO go to jail? No, then it's just an empty promise.
Re: (Score:3)
Indeed. "Promises" made by corporations have zero worth.
Re: (Score:2)
And when they do, will the CEO go to jail? No, then it's just an empty promise.
Just like Facebook's promise to regulators not to mine the data from WhatsApp was worth.
Re:yeah right (Score:5, Insightful)
Meanwhile they will kick the can down the road. Corrupt practice will continue unabated. Delay is the name of the game, and corporations can outwit, outwait, and out-maneuver regulators. And the politicians are always for sale.
Also by the CMA (Score:1)
Santa Claus was prosecuted for harassment of his gnome workers, in order for them to build more toy sized windmills, in a clear attempt to not get labeled as green house emissions company by hundreds of years delivering coal in the Great Britain area. Mr. Claus agreed to review his working policies, together with better environmental policies to be taken by his and petrol companies. More at 8.
And the regulator believed it? (Score:3)
What kind of drooling idiot is doing that job, or rather not doing it?
Re: (Score:2)
You know, the UK could save a lot of money in its judicial & penal systems by simply asking organised criminals to pinky-swear not to do it again.
Re: (Score:2)
Nah, this is just the left hand, waving frantically away and trying to get as much attention as possible.
Meanwhile, the right hand, under the table, is quietly opening a new loophole in another area of commerce that completely offsets any penalties for Meta and Amazon anyway.
The left hand and the right hand know very well what the other is doing.
Try that next time in court (Score:5, Insightful)
When they finally arrest you after stealing for a year, tell the judge that you promise you'll never do it again and you'll sure get acquitted.
Right?
Re: Try that next time in court (Score:2)
Exactly that!
"We have more lawyers than you have staff in your national juridical system, but we didn't know."
Right. They can shove their promises. Now how much are they going to refund to the godzillion of small businesses they put out?
Why I do no business nor have any accounts with either Meta or Amazon.
But did they pinky swear? (Score:2)
Even with a "monitoring trustee" I predict they'll still find a way to cheat and not get caught.
The ONLY way this kind of shit will stop is when a CEO and/or majority shareholder gets thrown in prison for a company's misbehaviour. And I'm not talking about Club Fed or house arrest - I'm talking about the when-you-drop-the-soap-in-the-shower-don't-bend-to-pick-it-up kind of prison.
What's That? (Score:1)
Amazon screwed their own sellers? Say it isn't soooooooooo...
Can we sell you a bridge? (Score:2)
We'll take "+10 to Gullability!"
Can we interest you in this exciting new crypto option?