Germany’s Federal Cartel Office has prohibited Amazon from enforcing price caps on independent retailers operating within its German marketplace and has issued a demand for 59 million euros in damages, saying the company engaged in unlawful pressure on sellers' pricing.
Regulator's reasoning
Cartel office president Andreas Mundt said the move reflects the agency’s view that Amazon functions as a competitor alongside third-party merchants on its platform. "Amazon competes directly with other marketplace retailers on its platform," Mundt said, adding that exerting influence on rivals’ prices - even by setting price caps - "is only permissible in absolutely exceptional cases, such as price gouging."
Monetary claim and legal context
The 59 million euro claim is notable as the first instance in which the German watchdog has sought financial compensation from Amazon for this particular behaviour. The cartel office invoked enforcement powers that were expanded through legislative reforms enacted in 2023 to underpin the demand.
Amazon's response and next steps
Amazon has one month to appeal the decision. Rocco Braeuniger, who serves as country manager for Amazon’s German site, said the company will challenge what he called "this unprecedented regulatory decision" and that it intends to continue normal operations while pursuing legal remedies.
Braeuniger defended the company’s approach to platform pricing, arguing that obliging Amazon to "promote uncompetitive or even abusive prices in the store, this will lead to a poor shopping experience." His statement frames the company’s position that restrictions on its interaction with sellers could harm consumer experience.
Broader enforcement activity
The German competition authority has indicated it is applying similar scrutiny to other online platforms. In October, the office opened an investigation into whether the Chinese e-commerce platform Temu exerts undue influence over the prices set by third-party merchants on its site.
Implications
The decision underscores increased regulatory focus on how major platforms manage seller relationships and pricing on marketplace ecosystems. The case will proceed through Germany’s administrative and legal channels if Amazon files an appeal within the stipulated one-month period.