European regulators have launched a formal investigation into Amazon's practices in the e-book market.
In a statement released Thursday, the European Commission announced that its antitrust investigation will focus on Amazon's contracts with publishers — and whether the Internet retailer is abusing its dominant position as the largest e-book distributor in Europe.
The commission, the 28-member executive arm of the European Union, is especially concerned with a few key parts of those contracts.
In particular, NPR's Lynn Neary reports, "The commission is concerned about specific clauses that require publishers to inform Amazon about more favorable or alternative terms offered by its competitors."
Margrethe Vestager, the commission's chief of competition policy, stressed that the case won't be casting a broad net. She made a point in the statement of mentioning that the investigation will not call into question Amazon's "successful business that offers consumers a comprehensive service, including for e-books.
"However," she continued, "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."
Amazon, for its part, said it would cooperate fully with the investigation, and that it was "confident" its deals with publishers "are legal and in the best interests of readers,"
according to The Wall Street Journal
As The New York Times points out, this is
not the first time
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