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US Senators Announced Plans to Introduce Non-Discrimination Bill to Reshape Amazon’s Online Marketplace.
16 Oct, 2021 / 12:45 pm / Reeny Joseph

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A much debated and negotiated pressure is growing in the Senate to pass new laws banning online platforms from giving preference to their own products and services over those of their competitors. A bipartisan group of senators announced plans to introduce a non- discrimination bill that could reshape Amazon’s online marketplace.

The American Choice and Innovation Online Act, led by Sens. Amy Klobuchar and Chuck Grassley, would prevent platforms like Amazon, Apple, and Google from using their dominance to disadvantage other companies and competitors that use their platforms. In June, House lawmakers voted out a bill sharing the same name from the Judiciary Committee. Klobuchar’s Senate version isn’t identical to the House’s, but shares similar language.

This announcement follows a report by Reuters claiming that Amazon used marketplace search data to copy popular products and manipulate results favouring the company’s own knockoff products.

For years, third-party sellers have accused Amazon of similar behaviour. These accusations were part of a yearlong House antitrust investigation into Amazon and other tech giants by lawmakers, spurring the original bipartisan bill in the House.

Outside of Amazon, the bill could also change how Apple and Google run their app stores, banning the companies from giving preference to their own first-party apps and software.

 This bipartisan support marks a significant step forward for lawmakers seeking to regulate online marketplaces, showing that both Republicans and Democrats are willing to work together to spur competition in the industry.

Despite the measure’s broad congressional support, trade groups like Chamber of Progress issued statements suggesting that the bill will hurt customer experiences online, not enhance them.

Pressure is mounting for Congress to act on online marketplaces and counterfeit products as well. Last week, House lawmakers introduced the INFORM Act, which would require platforms like Amazon to verify the identities of high-volume sellers in order to curb the sale of knockoff products