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Paul Merrell

Press corner | European Commission - 0 views

  • The European Commission has informed Amazon of its preliminary view that it has breached EU antitrust rules by distorting competition in online retail markets. The Commission takes issue with Amazon systematically relying on non-public business data of independent sellers who sell on its marketplace, to the benefit of Amazon's own retail business, which directly competes with those third party sellers. The Commission also opened a second formal antitrust investigation into the possible preferential treatment of Amazon's own retail offers and those of marketplace sellers that use Amazon's logistics and delivery services. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “We must ensure that dual role platforms with market power, such as Amazon, do not distort competition.  Data on the activity of third party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers. The conditions of competition on the Amazon platform must also be fair.  Its rules should not artificially favour Amazon's own retail offers or advantage the offers of retailers using Amazon's logistics and delivery services. With e-commerce booming, and Amazon being the leading e-commerce platform, a fair and undistorted access to consumers online is important for all sellers.”
  • Amazon has a dual role as a platform: (i) it provides a marketplace where independent sellers can sell products directly to consumers; and (ii) it sells products as a retailer on the same marketplace, in competition with those sellers. As a marketplace service provider, Amazon has access to non-public business data of third party sellers such as the number of ordered and shipped units of products, the sellers' revenues on the marketplace, the number of visits to sellers' offers, data relating to shipping, to sellers' past performance, and other consumer claims on products, including the activated guarantees. The Commission's preliminary findings show that very large quantities of non-public seller data are available to employees of Amazon's retail business and flow directly into the automated systems of that business, which aggregate these data and use them to calibrate Amazon's retail offers and strategic business decisions to the detriment of the other marketplace sellers. For example, it allows Amazon to focus its offers in the best-selling products across product categories and to adjust its offers in view of non-public data of competing sellers. The Commission's preliminary view, outlined in its Statement of Objections, is that the use of non-public marketplace seller data allows Amazon to avoid the normal risks of retail competition and to leverage its dominance in the market for the provision of marketplace services in France and Germany- the biggest markets for Amazon in the EU. If confirmed, this would infringe Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position.
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    "In addition, the Commission opened a second antitrust investigation into Amazon's business practices that might artificially favour its own retail offers and offers of marketplace sellers that use Amazon's logistics and delivery services (the so-called "fulfilment by Amazon or FBA sellers"). In particular, the Commission will investigate whether the criteria that Amazon sets to select the winner of the "Buy Box" and to enable sellers to offer products to Prime users, under Amazon's Prime loyalty programme, lead to preferential treatment of Amazon's retail business or of the sellers that use Amazon's logistics and delivery services. The "Buy Box" is displayed prominently on Amazon's websites and allows customers to add items from a specific retailer directly into their shopping carts. Winning the "Buy Box" (i.e. being chosen as the offer that features in this box) is crucial to marketplace sellers as the Buy Box prominently shows the offer of one single seller for a chosen product on Amazon's marketplaces, and generates the vast majority of all sales. The other aspect of the investigation focusses on the possibility for marketplace sellers to effectively reach Prime users. Reaching these consumers is important to sellers because the number of Prime users is continuously growing and because they tend to generate more sales on Amazon's marketplaces than non-Prime users. If proven, the practice under investigation may breach Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position. The Commission will now carry out its in-depth investigation as a matter of priority"
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    On the filed charges, the violation seems to be fairly clear-cut and straightforward to prove. (DG Competition has really outstanding lawyers.) I suspect the real fight here will be over the remedy.
Paul Merrell

Amazon will pay $62 million over deceptive delivery tips claims - Protocol - The people, power and politics of tech - 2 views

  • Amazon will pay almost $62 million to settle allegations by the U.S. Federal Trade Commission that it avoided handing over the full pay and tips it promised to delivery drivers, according to the agency.The company is giving back the amount it kept, according to a complaint released earlier this year by the agency, after it told Amazon Flex drivers and customers in 2015 it would pay $18 to $25 hourly plus tips. Instead, beginning the following year, it used tips to supplement lower base pay rates, and tried to hide the changes, according to the FTC."For a period of over two and a half years, without consumers' permission, Amazon secretly used nearly a third of customer tips to subsidize its own pay to drivers," the FTC had found.Under the 20-year settlement, Amazon will also need consent from drivers to change their pay scheme. All commissioners voted unanimously to approve the settlement.
Paul Merrell

Why I'm Suing YouTube and Google - 1 views

  • September 29, 2021, Google deleted my YouTube account for “violating community guidelines” they’d implemented that same morning September 28, 2022, I filed a lawsuit against Google, YouTube and Alphabet Inc. for breach of contract. YouTube unilaterally amended the contract without notice, which is a violation of its own terms, and then used this last-minute amendment to remove my content YouTube’s terms of service also include a “three strikes” policy, where users are supposed to be given three warnings and opportunities to remove content that violates the guidelines BEFORE being banned. I had no “strikes” against my channel on the day I was deplatformed and deleted We’re also suing YouTube for unjust enrichment, as for the last 16 years, my video content, having generated in excess of 50 million views, has been of great financial benefit to YouTube, allowing them to increase advertising revenue on the site November 8, 2021, I sued U.S. Sen. Elizabeth Warren, both in her official and personal capacities, for violating my First Amendment rights, as she tried to force Amazon.com to ban my book, “The Truth About COVID-19” September 29, 2021, Google deleted my YouTube account for “violating community guidelines” — guidelines they’d implemented that very same morning. September 28, 2022, I filed a lawsuit1 against Google, YouTube and Alphabet Inc. for breach of contract.2 As detailed in my complaint, YouTube unilaterally amended the contract without notice, which is a violation of its own terms, and then used this last-minute amendment to remove my content, which went back to 2005, the same year YouTube was founded. At the time YouTube deleted my content, I had more than 300,000 subscribers, and my videos had collectively garnered more than 50 million views. While I disagreed with YouTube’s censorship, when its “COVID-19 misinformation” policy was implemented back in April 2021, I carefully avoided posting any content on YouTube that might violate that guideline. In fact, over 16 years on the platform, I never once received notice of any “strike” against my channel for violation of community guidelines.
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