Regulator seeks feedback from small business.

 

The Australian Competition and Consumer Commission (ACCC) has announced an inquiry into online marketplaces including eBay, Amazon, Kogan and Catch.

 

The ACCC has called for small businesses and major brands to make submissions to its ongoing Digital Platform Services inquiry.

 

The ACCC wants small business sellers to share their experiences of using marketplaces by completing a short online survey.

 

The inquiry will focus on pricing practices, the use of data, terms and conditions imposed on third-party sellers, and the effects on competition when the marketplace also operates as a seller on its platform. It will also examine consumer issues, such as the ability of customers to leave reviews, how complaints are handled and how consumer data is collected and used.

 

In the EU, Amazon is already under investigation for distorting competition in online marketplaces, using seller data to improve its competitive position for its own retail sales.  

 

Although Amazon has not achieved a level of dominance in Australia similar to the EU, it operates under the same model here.  By providing the marketplaces selling platform and also selling products itself via the platform, it has a unique opportunity to control competition.  

 

The pandemic has led to a boom in online shopping, with online purchases growing 57 per cent in 2020 year-on-year.

 

Australians spent a record $50.5 billion online in 2020, compared with $27.5 billion in 2018, according to the ACCC. 

 

ACCC chairman Rod Sims said the inquiry aims to make sure the rules that apply to traditional retail are also complied with in the online context.

 

“We are keen to hear about the experiences of Australians, both consumers and businesses,” Sims said.