Apple and Amazon Face Antitrust Scrutiny in Germany Over 'Brandgating'

Apple and Amazon are set to face antitrust scrutiny in Germany over a policy that forbids independent sellers from retailing Apple products on Amazon, Bloomberg reports.

amazon

Germany's antitrust regulator, the Federal Cartel Office, has launched a probe into Apple and Amazon over the policy of "brandgating." The policy allows the makers of branded products, such as the iPhone, to have independent sellers removed from the retail platform, providing Amazon can sell the items instead.

"Brandgating agreements can help to protect against product piracy," the Cartel Office said in a statement. "But such measures must be proportionate to be in line with antitrust rules and may not result in eliminating competition."

Amazon responded, saying it never removes the sales permissions of sellers without sound reasons, and it invests heavily to protect customers from the illegal distribution of goods. The company has agreed to cooperate with the investigation.

The Cartel Office said that Apple is a "prominent" example of how Amazon conducts brandgating, which can purportedly take various forms. Amazon has only permitted Apple authorized vendors to sell Apple products on its platform since 2019. Amazon simultaneously became an Apple authorized vendor.

"The safety of our customers is our first priority, and our teams are constantly working with law enforcement, resellers, and e-commerce sites around the world to remove counterfeit products from the market," Apple said in a statement. "We work with Amazon to protect our customers from counterfeit products and provide confidence they are receiving a genuine Apple product out of the box."

The two companies have been investigated for similar accusations in the past, such as allegedly blocking the sale of Apple and Beats devices from resellers in order to stifle competition and fix prices.

Apple and Amazon are among the big tech companies under scrutiny around the world, particularly in the European Union, where a new Digital Services Act is poised to hit big tech with wide-reaching regulations.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Popular Stories

iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Production Will Reportedly Begin Ramping Up in October

Tuesday July 23, 2024 2:00 pm PDT by
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
iPhone 17 Plus Feature

iPhone 17 Lineup Specs Detail Display Upgrade and New High-End Model

Monday July 22, 2024 4:33 am PDT by
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
Generic iPhone 17 Feature With Full Width Dynamic Island

Kuo: Ultra-Thin iPhone 17 to Feature A19 Chip, Single Rear Camera, Semi-Titanium Frame, and More

Wednesday July 24, 2024 9:06 am PDT by
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Less Than Two Months Away: Everything We Know

Thursday July 25, 2024 5:43 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
icloud private relay outage

iCloud Private Relay Experiencing Outage

Thursday July 25, 2024 3:18 pm PDT by
Apple’s iCloud Private Relay service is down for some users, according to Apple’s System Status page. Apple says that the iCloud Private Relay service may be slow or unavailable. The outage started at 2:34 p.m. Eastern Time, but it does not appear to be affecting all iCloud users. Some impacted users are unable to browse the web without turning iCloud Private Relay off, while others are...
iPhone 17 Plus Feature Purple

iPhone 17 Rumored to Feature Mechanical Aperture

Tuesday July 23, 2024 9:32 am PDT by
Apple is planning to release at least one iPhone 17 model next year with mechanical aperture, according to a report published today by The Information. The mechanical system would allow users to adjust the size of the iPhone 17's aperture, which refers to the opening of the camera lens through which light enters. All existing iPhone camera lenses have fixed apertures, but some Android...

Top Rated Comments

macduke Avatar
49 months ago
Amazon was notorious for years for selling fake Apple products. People were even getting injured by fake chargers that were catching on fire! And now they want to reverse that? Amazon still has problems with tons of fake products, fake reviews, existing product pages being purchased and swapped out for a completely different product to inflate reviews, etc. It's a mess. This was the one good thing they've done in recent years, probably because Apple was threatening to sue them because it makes them look terrible, and Germany wants to ruin it? Also not sure why Apple can't have authorized resellers. Lots of companies do this. I can't even get service on a camera unless I buy it from an authorized reseller most of the time.
Score: 9 Votes (Like | Disagree)
Peepo Avatar
49 months ago
Why can’t Apple choose who it wants to sell their products and also control retail price? If this changes then coiuld see lots of sellers offering “branded” Apple accessories which are really fake knockoffs, and maybe even scalping hard to find Apple products eg. New iPhones that are hard to get.
Score: 7 Votes (Like | Disagree)
dwaltwhit Avatar
49 months ago
I have to plead ignorance here: I read this article twice and I still don’t understand what brandgating is.
Score: 7 Votes (Like | Disagree)
centauratlas Avatar
49 months ago

Why can’t Apple choose who it wants to sell their products and also control retail price? If this changes then coiuld see lots of sellers offering “branded” Apple accessories which are really fake knockoffs, and maybe even scalping hard to find Apple products eg. New iPhones that are hard to get.
Exactly. What you will see next from the Germany government (as somewhat referenced in the article) is:

"why isn't Amazon doing more to stop counterfeit products? The people of Germany are purchasing what they think are iPhones (or whatever) and getting non-Apple pseudo clones."
Score: 6 Votes (Like | Disagree)
anthogag Avatar
49 months ago
It is looking like the big tech companies are forming cozy relationships left and right. The solution is simple...right in front of your nose...make Amazon go back to selling only books.
Score: 5 Votes (Like | Disagree)
SirithX Avatar
49 months ago

I have to plead ignorance here: I read this article twice and I still don’t understand what brandgating is.
Know how you can go on Amazon and look up products and multiple 3rd party resellers are selling that product, but a lot of the time it's a knock off instead of the real thing? That's basically what they're trying to protect against, by stopping resellers in the event that the actual first party is able to sell the product to you directly.
Score: 5 Votes (Like | Disagree)