UPDATED 15:56 EST / AUGUST 02 2019

POLICY

FTC reportedly examining Amazon’s e-commerce partnership with Apple

A high-profile e-commerce deal between Amazon.com Inc. and Apple Inc. has drawn the attention of the Federal Trade Commission, The Verge reported today.

The two companies agreed in November to set up a dedicated storefront for Apple products on Amazon’s marketplace. The page enables shoppers to order devices directly from the iPhone maker and its network of authorized resellers. 

At the time of the announcement, Amazon hailed the partnership as a move that will provide easier access to Apple devices for users. But the deal soon drew criticism because of its impact on small merchants that had already been selling Apple devices on Amazon. The online retail giant informed these sellers that their listings would be removed at the beginning of 2019 unless they secure a resale authorization from the iPhone maker.

Critics argued at the time that taking down independent merchants’ listings would limit choice for consumers. The FTC, it seems, has taken notice of these concerns.

A MacBook reseller by the name of John Bumstead whose Amazon listings had been removed told The Verge that agency officials interviewed him earlier this month. The group, which Bumstead said included FTC lawyers and an economist, inquired about what harm the partnership caused to his business. The names of the officials who took part weren’t published, but one of them is reportedly attached to the antitrust task force the agency formed this year to regulate tech giants.

The news suggests that the FTC may be weighing a formal investigation into Amazon’s Apple partnership. Regulatory agencies pursuing antitrust actions often seek out input from affected parties, as the Netherlands’ competition authority has done as part of its probe of Apple’s App Store policies. But the FTC’s apparent interest in the Amazon-Apple deal doesn’t necessarily mean there will be an investigation.

The online retail giant is facing increased scrutiny elsewhere as well. On Thursday, the Wall Street Journal reported that the Federal Reserve has taken an interest in Amazon’s cloud business. According to the Journal’s sources, Fed officials showed up at an Amazon Web Services data center in Virginia this year to conduct a formal examination of its reliability. 

Over on the other side of the pond, Amazon is the subject of an antitrust probe from the European Commission. Regulators are investigating whether the company used the data it collects about third-party merchants on its marketplace to gain an unfair competitive advantage. 

Photo: John Taylor/Flickr

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