European commission to investigate Amazon's ebook dominance

US tech sector's problems with Brussels deepen as competition chief focuses on allegedly restrictive contract clauses

The European commission has launched a competition inquiry into Amazon's dominant market position in ebooks, as Brussels steps up its scrutiny of US tech groups. The EU's executive branch is looking at clauses in contracts between Amazon and publishing houses that restrict publishers from offering better terms to the online retailer's competitors. The clauses sometimes require publishers to disclose to Amazon the terms offered to rival retailers.

"Amazon has developed a successful business that offers consumers a comprehensive service, including for ebooks," said the EC's competition commissioner, Margrethe Vestager. "Our investigation does not call that into question. However, it is my duty to make sure that Amazon's arrangements with publishers are not harmful to consumers, by preventing other ebook distributors from innovating and competing effectively with Amazon. Our investigation will show if such concerns are justified."