Online shopping giant to end price policy [Western Mail (Wales)]
(Western Mail (Wales) Via Acquire Media NewsEdge) SELLERS using online retail giant Amazon will now be able to set prices as they wish following an investigation by the Office of Fair Trading (OFT).
Following numerous complaints, the OFT opened a formal investigation into Amazon's price parity policy in October last year.
The investigation has now been closed and Amazon has agreed to end its price parity policy.
Cavendish Elithorn, OFT senior director of goods and consumer, said: "We welcome Amazon's decision to end its Marketplace price parity policy across the European Union.
"As Amazon operates one of the UK's biggest e-commerce sites, the pricing on its website can have a wide impact on online prices offered to consumers elsewhere.
"We are pleased that sellers are now completely free to set their prices as they wish, as this encourages price competition and ensures consumers can get the best possible deals.
"The OFT recommends that other companies operating similar policies review them carefully. Businesses concerned that they are being prevented from setting their own prices should not hesitate to contact the OFT."
The OFT was concerned Amazon's policy was potentially anti- competitive. A spokesman for the watchdog said: "In particular, such policies may raise online platform fees, curtail the entry of potential entrants, and directly affect the prices which sellers set on platforms (including their own websites), resulting in higher prices to consumers."
Amazon operates a fulfilment centre at Jersey Marine near Swansea.
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