E-commerce giant Amazon is under investigation by the UK's competition watchdog over claims it favors its own warehouses over third-party sellers.
The Competition and Markets Authority (CMA) will look into whether customers are getting a "worse deal" due to the online retailer giving an unfair advantage to its retail arm or sellers who use its services in the Amazon UK Marketplace.
In particular, the probe will examine how Amazon uses third-party retailers' data and its criteria for access to the "Amazon Prime" service, which includes free deliveries. It will also look at how Amazon decides which company's product has the privilege of featuring in the instant "Buy Box" on the website's home page.
"Millions of people across the UK rely on Amazon's services for fast delivery of all types of products at the click of a button," said CMA general counsel Sarah Cardell. "This is an important area so it's right that we carefully investigate whether Amazon is using third-party data to give an unfair boost to its own retail business and whether it favours sellers who use its logistics and delivery services - both of which could weaken competition."
"Thousands of UK businesses use Amazon to sell their products and it is important they are able to operate in a competitive market," Cardell added. "Any loss of competition is a loss to consumers and could lead to them paying more for products, being offered lower quality items or having less choice."
Billionaire Amazon founder Jeff Bezos also owns the liberal US Washington Post newspaper. The company has been criticized for its treatment of warehouse staff and its resistance to recognizing trade unions.