EU Reportedly Launches New Amazon Antitrust Probe

According to documents released on Thursday, the European Commission has launched an official antitrust probe into Amazon.com, Inc. AMZN e-book business.

In a statement released on Thursday, regulators explained that the antitrust investigation will focus on whether or not Amazon is abusing its dominant global position in e-book publishing.

The Details

The 28-member European Union executive arm is particularly concerned with Amazon’s contracts with publishers. “The commission is concerned about specific clauses that require publishers to inform Amazon about more favorable or alternative terms offered by its competitors,” NPR’s Lynn Neary explains.

Not As Bad As It Seems?

Amazon shareholders should not be overly concerned about the scope of the investigation. In the commission’s statement, chief of competition policy Margrethe Vestager writes that the investigation will not target Amazon's general retail practices.

“However, it is my duty to make sure that Amazon’s arrangements with publishers are not harmful to consumers, by preventing other e-book distributors from innovating and competing effectively with Amazon,” Vestager elaborates.

European Hurdles Continue

Amazon shareholders may be getting fed up with the EU’s antitrust office at this point. Earlier this year, the EU named Amazon as one of the companies it was investigating for potential unfair tax agreements that have allowed big-name American companies such as Amazon, Apple Inc. AAPL and Starbucks Corp SBUX to dodge the majority of European taxes in recent years.

Google Inc GOOGGOOGL has also recently been placed in the EU antitrust office’s spotlight for allegations that the company was skewing its search results unfairly in favor of its own shopping service.

Disclosure: the author holds a short position in Amazon.