A signboard is seen at an Amazon warehouse in Ottawa (Photo: THE CANADIAN PRESS/Sean Kilpatrick)
Amazon is once again in the spotlight—this time in Canada—after the country’s Competition Bureau secured a court order to dig deeper into the online giant’s pricing practices.
On Tuesday, the Competition Bureau revealed that it's currently investigating Amazon’s Fair Pricing Policy, a rule that affects how third-party sellers price their goods on the Amazon.ca marketplace. The court order, granted by the Federal Court, forces Amazon to hand over documents and information that may shed light on whether the company’s rules are unfair or limit competition.
At the heart of the investigation is a policy that allows Amazon to take action against sellers who list products at much higher prices on Amazon compared to other websites or even previous listings on the same platform. These actions can include suppressing product visibility or suspending the seller altogether. According to the Bureau, such rules might hurt competition and could be an example of what’s known as "abuse of dominance."
The platform isn't just a storefront for Amazon itself. It also hosts countless third-party sellers, many of whom pay Amazon to reach its large customer base. These sellers rely heavily on Amazon’s marketplace, and being penalized for pricing decisions could severely impact their business.
While Amazon has not commented on the specifics of the investigation, the company’s spokesperson, Julia Lawless, defended its current setup. She emphasized that Amazon’s system is built to keep prices low for consumers, offer flexible delivery choices, and support a wide range of Canadian businesses selling on its site.
“Our tools are designed to help customers make smart buying decisions and to keep their trust,” Lawless wrote in an email. “We also aim to support thousands of Canadian businesses that use our store.”
Importantly, the Bureau clarified that this investigation into Amazon’s pricing policy is separate from any ongoing reviews into how the company markets its products.
As more Canadians turn to online shopping, especially in a post-pandemic world, watchdog agencies are sharpening their focus on how large digital marketplaces operate. Pricing policies like Amazon’s are under increasing scrutiny not just in Canada, but globally, with regulators questioning whether these companies are using their size and influence to stifle smaller players or manipulate market behaviour.
For now, the Bureau hasn’t made any accusations. This stage of the process is about gathering evidence. The information Amazon is now required to provide could be key in determining whether the company’s policies cross legal lines.
The investigation is expected to continue for several months, and depending on what’s uncovered, it could lead to further legal actions or changes in how Amazon does business in Canada.
