Leading financial news blog DigitalOlympus.com has commented on recent reuters.com news story regarding a report from a German newspaper indicting Amazon of undermining competition when dealing with third-party merchants.
Long Island, NY -- (SBWIRE) -- 12/11/2013 -- Sequel to a recent news article by Arno Schuetze published on October 20 on reuters.com about Germany's antitrust watchdog which indicted Amazon of weakening rivalry when dealing with third-party merchants and declared it would enact reform except the web retailer modify its tactics.
The reuters.com news story points that, the president of the German cartel office, Andreas Mundt was cited as telling daily Sueddeutsche Zeitung that "Luckily, we have instruments of torture, which we will use if necessary." A battle with rivalry authorities in its second-largest market after the United States would increase Amazon’s setbacks.
“It’s important for Amazon to make moves that will change its third-party deals tactics to avert the penalties of the watchdogs,” says DigitalOlympus.com lead researcher Josh Cole. “We’ll suggest that Amazon and other firms in similar situations hire a firm that specializes in business intelligence investigations to help them choose the right tactics for third-party deals.”
The reuters.com news report further indicates that Amazon’s German operations have been affected by a conflict over employees' pay and a trade union has threatened that staff could strike during the Christmas holiday season.
“It’s also important for Amazon to seek the service of experts that focus on how to avert violating the tenets of the foreign corrupt practices act,” Cole said.
The reuters.com news piece also points that a pre-release on Sunday of the newspaper's Monday edition Mundt was cited as saying "The terms of Amazon's Marketplace in effect obstruct competition. We are in talks with Amazon to eliminate these impediments to competition; if necessary we will issue a crystal clear decree."
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