Amazon's sales hosting plan faces closure due to suspected antitrust

Amazon's sales hosting plan faces closure due to suspected antitrust

According to foreign media reports, Amazon may soon shut down its sales hosting program . It is understood that the Amazon sales hosting program ( Sold by Amazon , hereinafter referred to as the SBA program) enables the Amazon platform to automatically reprice selected third-party products .

 

It is reported that the main reason for the closure of the program is that according to the relevant ruling, the program violates competitiveness and is suspected of violating antitrust laws . Amazon has decided to stop the SBA program.

 

The SBA program was launched in 2019 and has been trying to balance the interests of buyers and sellers since its launch, setting a minimum payment rate. If sales exceed the agreed minimum level, Amazon will take a cut of the additional revenue .

 

Amazon launched the SBA program to save sellers time and provide buyers with more acceptable prices. However, the program was criticized by sellers for its low pricing. Some sellers said that low product pricing would affect their sales.

 

The report also stated that the lawsuit believes that the SBA program does not cover all third-party sellers on the platform ( brand registration is required in Amazon Brand Center). Washington State Attorney General Bob Ferguson said that while the program promotes Amazon sales, it also allows Amazon to avoid competition with third -party sellers .

 

According to reports, Amazon will shut down the project nationwide and pay $2.25 million to the Washington State Attorney General's Office . The fine will be used to enforce antitrust laws .

 

In the past two years, Amazon has faced many antitrust cases in Europe and the United States. Last year, the U.S. House of Representatives also announced a number of bills targeting the monopoly of technology giants, some of which involved not harming the interests of third parties and favoring self-operated products. In December 2021, Amazon also faced a fine of 1.128 billion euros for allegedly abusing its market dominance.

 

Despite facing many problems, Amazon's seller entry rate and buyer satisfaction still rank among the top among major e-commerce platforms.


Antitrust

Amazon

Selling Hosting Plans

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