The European Commission (EC) has launched a formal investigation into Amazon‘s electronic books distribution practices.
The commission’s investigation will initially focus on the largest markets for e-books in the European Economic Area, namely e-books in English and German. The company is currently the largest distributor of e-books in Europe.
The EC intends to investigate several clauses included in Amazon’s contracts with publishers.
The clauses require publishers to inform Amazon about more favourable or alternative terms offered to its competitors, in an effort to make sure items are in-line with what rivals are offering.
EU Commissioner in charge of competition policy Margrethe Vestager said: "Amazon has developed a successful business that offers consumers a comprehensive service, including for e-books. Our investigation does not call that into question.
"However, it is my duty to make sure that Amazon’s arrangements with publishers are not harmful to consumers, by preventing other e-book distributors from innovating and competing effectively with Amazon. Our investigation will show if such concerns are justified."
Amazon said it is confident that its agreements with publishers were legal and in the best interests of readers.
The company said: "We look forward to demonstrating this to the Commission as we cooperate fully during this process."
Amazon has recently started paying taxes in individual European countries and stopped channeling all of its sales via its Luxembourg subsidiary, amidst a probe on its tax practices in the continent.
