The Competition Bureau has obtained a court order to advance its investigation into Amazon's conduct on its online Canadian marketplace, Amazon.ca, to determine if the company is engaging in conduct that may be an abuse of dominance under the Competition Act.
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.
