Antitrust: Commission fines Amazon €776 million for anti-competitive agreements with publishers

European Commission - Press release

Brussels, 4 May 2017

The European Commission has found that Amazon broke EU antitrust rules by preventing e-book publishers from competing with Amazon on price. As a result, customers overpaid for e-books bought on Amazon.de and Amazon.fr.

The Commission imposed a fine of €776 million on Amazon and ordered the company to end its illegal practices. Amazon has committed to changing its agreements with publishers within 90 days.

Commissioner Margrethe Vestager, in charge of competition policy, said: "Amazon is dominant in the market for e-books in Europe. It should not use its market power to harm competition. Authors and consumers have suffered from Amazon's illegal behavior. Our decision today sends a clear message that Amazon's conduct was unacceptable. We must ensure that European consumers benefit from effective competition in the digital economy."

The Commission's investigation

The Commission's investigation focused on agreements between Amazon and five major publishers - Hachette Livre, HarperCollins, Macmillan, Simon & Schuster and Verlagsgruppe Georg von Holtzbrinck.

These agreements contained clauses that prevented the publishers from offering better terms to Amazon's competitors, for example in terms of price.

The Commission found that these clauses restricted competition between Amazon and other online retailers, leading to higher prices for e-books.

The Commission also found that the clauses prevented publishers from selling their e-books on new platforms, such as subscription services.

The Commission's decision is based on Article 102 of the Treaty on the Functioning of the European Union (TFEU), which prohibits the abuse of a dominant position.

Amazon's commitments

Amazon has committed to change its agreements with publishers within 90 days. The changes will ensure that publishers are free to offer discounts and other promotions to Amazon's competitors, and to sell their e-books on new platforms.

The Commission will monitor Amazon's compliance with its commitments closely.

Background

Amazon is the largest online retailer in Europe. It has a dominant position in the market for e-books in the EU.

The Commission's investigation into Amazon's practices began in 2015. The investigation was triggered by complaints from several e-book publishers.

The Commission has concerns about other practices of Amazon, such as the treatment of certain sellers on its marketplace. These concerns are the subject of separate investigations.

More information on the case will be available on the Commission's competition website, in the public case register under the case number AT.40153.