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Investing.com -- The Competition Bureau has secured a court order to investigate Amazon (NASDAQ:AMZN)’s conduct on its Canadian marketplace, Amazon.ca, focusing on potential abuse of dominance under the Competition Act.
The investigation centers on Amazon’s Marketplace Fair Pricing Policy, which allows the company to penalize sellers who set significantly higher prices on Amazon.ca compared to recent prices offered on Amazon or other platforms.
Investigators are working to determine if the policy enables Amazon to charge higher fees to sellers than it otherwise would, potentially causing sellers to raise retail prices for customers.
The Bureau is also examining whether the policy prevents competitors from entering or expanding by stopping sellers from offering lower prices on other platforms, and if it reduces price competition among online marketplaces or retail channels.
The Federal Court order requires Amazon to produce records and information relevant to the investigation. The Competition Bureau has not reached any conclusion of wrongdoing at this time.
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