|Tue Mar 12 2019 11:13:22|
Under Scrutiny, Amazon Kills Price Parity Policy
By: Ina Steiner
Under increasing scrutiny over what some see as anti-competitive practices, Amazon reportedly eliminated its price parity requirement. The move comes after Senator Warren's call on Friday to break up the company over antitrust concerns, which gained widespread attention.
Amazon.com's price parity clause prohibits sellers from offering items they list on Amazon at a lower price anyplace else. The link to the policy
now goes to a blank help page, but here's what it had said when we wrote about it 6 years ago:
"By our General Pricing rule, you must always ensure that the item price and total price of an item you list on Amazon.com are at or below the item price and total price at which you offer and/or sell the item via any other online sales channel."
That was unpopular with sellers who wished to offer lower prices elsewhere, including on their own websites where they did not have to pay Amazon fees.
Germany began looking into the practice in 2012, and under pressure, Amazon ended the price parity policy across the European Union as of August 30, 2013, but it left the policy in place in the US.
We're uncertain whether other marketplaces will adjust their own policies in response.