Germany today prohibited Amazon from using algorithmic price control mechanisms that influence third-party seller pricing on its marketplace platform. The Bundeskartellamt issued the enforcement order against Amazon.com Inc. and Amazon EU S.à r.l. on February 5, 2026, marking the first time the German competition authority has ordered disgorgement of economic benefits under provisions reformed in 2023.

The decision affects marketplace operations on amazon.de, which accounts for approximately 60 percent of online retail sales in Germany according to the regulatory findings. More than 200,000 third-party sellers operate on the marketplace, collectively generating around 60 percent of the platform's total trading volume, while Amazon's own retail business accounts for the remaining 40 percent.

Andreas Mundt, President of the Bundeskartellamt, characterized the enforcement as addressing fundamental competition concerns in Germany's online retail sector. "Amazon directly competes with the other Marketplace sellers on its platform," Mundt stated in the official announcement. "Therefore, influencing its competitors' pricing, including through price caps, is only permissible in the most exceptional cases, such as in the event of excessive pricing."

The authority identified three distinct pricing control mechanisms that Amazon deployed across its marketplace. These systems categorize seller offerings based on algorithmic price assessments, with varying consequences for visibility and sales performance.

Technical implementation of price controls

Amazon's pricing enforcement architecture employed algorithms, statistical models, heuristics, and machine learning tools to calculate dynamic price caps for marketplace sellers, according to the investigation findings. These systems analyzed current and historical prices from both Amazon listings and external competitors to establish benchmark thresholds.

The first mechanism targeted products deemed "pricing errors" based on statistical modeling. Offers flagged under this category faced complete removal from the marketplace through what Amazon termed "deactivation." The second mechanism addressed items classified as "excessively high prices," resulting in exclusion from the Buy Box feature. The third mechanism compared seller prices against external online retailers on Amazon's internal monitoring list, disqualifying offers considered "uncompetitive prices" from Buy Box eligibility.

Buy Box placement represents the primary sales driver on amazon.de, with the highlighted product field generating the vast majority of platform transactions. Sellers excluded from this prominent positioning experience significant sales declines as their offers get relegated to secondary "Other sellers on Amazon" sections that capture only a small fraction of purchasing activity.

The Bundeskartellamt found that Amazon's price control systems lacked sufficient transparency in both their operational parameters and seller notifications. Marketplace merchants could not predict with adequate accuracy when their offers would trigger visibility restrictions. The statistical models calculating price caps remained undisclosed, and Amazon did not clarify in its terms of service or explanatory materials which circumstances would result in offer deactivation versus Buy Box disqualification.

Competition law violations

The enforcement action cited violations under both Section 19a(2) of the German Competition Act and general abuse provisions in Section 19 GWB and Article 102 TFEU. The Bundeskartellamt determined that systematic interference with marketplace seller pricing freedom constitutes abuse under special provisions for large digital companies as well as traditional competition law.

The Bundeskartellamt designated Amazon as having paramount significance for competition across markets in July 2022, a determination confirmed by Germany's Federal Court of Justice in April 2024. This designation subjects the company to extended abuse control provisions designed specifically for large digital ecosystems.

Amazon maintains a dominant position in marketplace services for commercial retailers in Germany, with a revenue-based market share exceeding 70 percent according to the regulatory assessment. Even recent market entries such as Temu have failed to substantially alter this market position, with their trading volumes remaining far below Amazon's scale.

The authority rejected Amazon's stated goal of offering consumers the lowest possible prices as justification for the pricing mechanisms. Mundt emphasized that price control systems are unnecessary to achieve competitive pricing. "Amazon could offer sellers appropriate incentives by reducing the fees and commissions they have to pay," Mundt explained. "But Amazon is not allowed to restrict the visibility of legally permissible offers from Marketplace sellers or even remove them entirely simply because their prices are not in line with its expectations."

Impact on marketplace competition

The pricing control mechanisms restrict competitive processes on the marketplace through frequently changing price limits set at Amazon's discretion, according to the preliminary findings. These restrictions do not follow objective, verifiable principles and lack sufficient transparency in Amazon's communications with third-party sellers.

Strict price caps often prevent sellers from covering their operational costs, according to the enforcement decision. This creates displacement pressure that forces predominantly small and medium-sized merchants from the marketplace. Amazon sellers have reported scenarios where platform fees, advertising costs, and other charges consume potential profits even before accounting for price restrictions.

Amazon's dual role as both platform operator and direct marketplace competitor enables coordination of marketplace prices according to its own pricing principles. The company's practice of systematically enforcing the lowest observed external price in online retail acts as a barrier to switching for end customers and discourages other online retailers from offering lower prices, according to the regulatory analysis.

This dynamic creates a feedback loop that concentrates competitive activity on Amazon's platform while reducing incentives for price competition elsewhere. External retailers have little reason to engage in aggressive price competition if those lower prices immediately appear on Amazon's dominant marketplace, making the external price reduction ineffective for attracting customers.

Enforcement remedies and timeline

The Bundeskartellamt prohibited Amazon from using the existing price control mechanisms and ordered the company to cease the associated notification practices within nine months. Amazon must develop proposed compliance solutions within three months and submit them to the regulatory authority for review.

The prohibition includes the "Marketplace Policy for Fair Pricing" as a contractual basis for seller restrictions. Amazon may continue using price control mechanisms only in exceptional cases, particularly for excessive pricing that violates applicable law, and must comply with specific transparency requirements set by the Bundeskartellamt.

Future price control implementations must describe the basic functioning of mechanisms, the frequency of price cap adjustments, and the exact consequences of sanctions in general terms and conditions. When price caps utilize base values and safety margins, typical for calculating excessive pricing thresholds, the size of these margins must be specified.

Sellers affected by price control measures must receive transparent notifications stating reasons for visibility sanctions. These communications must identify specific items by Amazon Standard Identification Number, document the time of the visibility sanction, specify the seller price that triggered the action, and disclose the underlying threshold value.

The Bundeskartellamt coordinated transparency requirements with the Bundesnetzagentur, which enforces the Platform-to-Business Regulation governing how online platforms treat commercial users. The P2B Regulation aims to ensure transparency, fairness, and legal certainty for companies selling through platform infrastructure.

Economic benefit disgorgement

The €58.8 million disgorgement order represents the first application of enforcement provisions reformed in Germany's 11th amendment to the Competition Act, which took effect in late 2023. The amount constitutes a partial calculation since the identified antitrust violation continues, with additional disgorgement potentially following.

The reform lowered requirements for skimming off economic advantages gained through competition law violations. The authority can now determine benefits based on presumption rules rather than requiring comprehensive proof of specific financial gains. Disgorgement differs from fines in that it aims to neutralize economic advantages rather than punish behavior.

The relatively modest €59 million figure compared to Amazon's billions in marketplace revenue reflects the initial partial calculation approach. The Bundeskartellamt has indicated it may order additional disgorgement amounts as the enforcement proceeds and further economic benefits can be assessed.

Appeal process and judicial review

Amazon has one month to file an appeal against the decision. Appeals proceed directly to Germany's Federal Court of Justice due to the case's basis under Section 19a GWB provisions for large digital ecosystems. This shortened legal process enables faster resolution of enforcement actions against major technology platforms.

If Amazon pursues summary proceedings challenging the enforcement order, implementation of the compliance obligations will be suspended during the judicial review. The decision is not yet final pending the appeal period and potential court proceedings.

The enforcement coordination extended beyond German borders. The Bundeskartellamt worked closely with the European Commission, which enforces the Digital Markets Act at the EU level. Amazon holds gatekeeper designation under the DMA for its marketplace services, subjecting the company to specific behavioral obligations across European markets.

The Commission previously concluded two cases against Amazon under Article 102 TFEU through commitments. One case addressed Amazon's use of non-public seller data for its own services. Another examined self-preferential criteria for Buy Box selection. Neither case covered the price control mechanisms now prohibited by Germany.

Marketplace ecosystem implications

The prohibition affects amazon.de's role as Germany's dominant e-commerce infrastructure. The platform hosts approximately 1.5 billion distinct items spanning consumer electronics, fashion, home goods, and numerous other product categories. Third-party sellers depend on marketplace access for reaching German consumers, with many merchants generating substantial portions of revenue through Amazon sales.

Sellers participating in Amazon's Fulfillment by Amazon program have faced increasing fee structures including storage charges, referral fees, and advertising costs. The inability to adjust prices above algorithmic thresholds while absorbing rising platform costs creates financial pressure on independent merchants.

Recent policy changes including mandatory prepaid return labels and star-only feedback systems have further constrained seller autonomy. Marketplace merchants operate within Amazon's platform rules while competing against Amazon's own retail operations for customer attention and sales.

The enforcement decision explicitly acknowledges Amazon's legitimate interest in offering competitive prices to consumers. However, it establishes that a hybrid marketplace operator cannot achieve this objective by sanctioning independent merchant pricing and coordinating competitive processes across the trading platform.

Alternative methods exist for encouraging lower prices without violating competition law. Reducing marketplace fees would create economic incentives for sellers to pass cost savings to consumers through competitive pricing. This approach maintains seller pricing autonomy while achieving the goal of competitive consumer prices.

Regulatory context and precedent

The case represents significant enforcement under Germany's expanded competition framework for digital markets. The Bundeskartellamt gained enhanced authority through Section 19a GWB provisions specifically targeting large digital ecosystems that demonstrate paramount competitive significance across multiple markets.

Five companies currently hold this designation in Germany: Alphabet, Amazon, Apple, Meta, and Microsoft. The designation enables the Bundeskartellamt to prohibit certain practices that might hinder fair competition even when traditional abuse standards might not apply.

Germany's competition enforcement has increasingly focused on digital platform governance and marketplace fairness. The Bundeskartellamt previously investigated Apple's App Tracking Transparency Framework for potentially providing unfair advantages over third-party developers through differential treatment in consent dialogues and data processing definitions.

European regulatory frameworks increasingly address platform power and marketplace dynamics through complementary legal instruments. The Digital Markets Act establishes ex-ante obligations for designated gatekeepers. Traditional competition law enables case-by-case enforcement against specific abusive practices. National provisions like Section 19a GWB provide additional tools for addressing digital market concerns.

The coordination between these regulatory layers aims to prevent conflicting requirements while ensuring comprehensive coverage of competitive issues. The Bundeskartellamt's enforcement demonstrates how national competition authorities can address marketplace-specific concerns not fully captured by broader EU frameworks.

Timeline

  • July 2022: Bundeskartellamt designates Amazon as having paramount significance for competition across markets
  • November 2022: Bundeskartellamt announces investigation into Amazon's price control mechanisms under Section 19a GWB
  • April 2024: Federal Court of Justice confirms Amazon's designation for extended competition oversight
  • June 2, 2025: Bundeskartellamt delivers preliminary assessment finding price control mechanisms likely violate competition law
  • September 2025: Amazon releases profit analytics dashboard enabling sellers to analyze fees and costs
  • October 11, 2025: Amazon introduces seller challenge feature for account health assurance members
  • February 5, 2026: Bundeskartellamt issues final prohibition decision and orders €59 million disgorgement

Summary

Who: The Bundeskartellamt prohibited Amazon.com Inc. and Amazon EU S.à r.l., entities operating the amazon.de marketplace platform used by more than 200,000 third-party sellers reaching German consumers. Andreas Mundt, President of the Bundeskartellamt, led the enforcement action affecting marketplace sellers, Amazon's retail operations, and online commerce competition.

What: Germany banned Amazon's algorithmic price control mechanisms that restricted third-party seller pricing through deactivation and Buy Box disqualification. The order prohibits three distinct systems categorizing offers as pricing errors, excessively high prices, or uncompetitive prices based on non-transparent statistical models. The Bundeskartellamt also ordered disgorgement of €58.8 million in economic benefits, representing the first application of reformed enforcement provisions.

When: The prohibition order was issued on February 5, 2026, concluding investigations initiated in November 2022. Amazon has nine months to comply with cessation requirements and three months to submit proposed compliance solutions. The company may appeal within one month, triggering direct Federal Court of Justice review.

Where: The enforcement applies to amazon.de operations within Germany's online retail market, where Amazon accounts for approximately 60 percent of e-commerce sales. The decision affects marketplace services across German territory and establishes precedent for hybrid platform regulation in digital markets subject to national competition authority jurisdiction.

Why: The Bundeskartellamt determined that systematic pricing interference restricts marketplace competition, prevents sellers from covering operational costs, and coordinates competitive processes according to Amazon's preferences rather than market dynamics. Amazon's dual role as platform operator and direct marketplace competitor created inherent conflicts when the company influenced competitor pricing through algorithmic caps. The enforcement aims to restore independent seller pricing autonomy while maintaining competitive market conditions.

Share this article
The link has been copied!