Canada’s Competition Bureau has launched an investigation into e-commerce giant Amazon (NASDAQ:AMZN)
The Canadian regulator is looking into Amazon.com Inc. over concerns that the online shopping giant’s practices hurt local companies and consumers. In a written statement, the Competition Bureau of Canada said it is examining allegations of "potential abuse of dominance" by Amazon.
The Ottawa-based watchdog is focusing on Amazon practices that may discourage third-party sellers from offering products at a lower price or force them to use the Seattle-based company’s fulfillment services to list their products in Canada.
An Amazon spokesperson said the company is cooperating with the Canadian probe and will continue to support small- and medium-sized businesses who sell on their platform.
The Competition Bureau is also examining whether Amazon’s policies "influence consumers to purchase products it offers for sale over those offered by competing sellers." The federal regulator has asked third parties to provide input for the investigation.
Canada’s move comes on the heels of an investigation by the European Union’s powerful competition watchdog, which was launched in 2019. A formal antitrust complaint is expected to be filed against the U.S. giant in Europe.
Amazon has previously said that the retail market is fiercely competitive and that the company accounts for a fraction of U.S. retail sales. Amazon has also touted the success of independent merchants on its site.
