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The European Union (EU) has filed antitrust charges against Amazon for feeding non-public seller data into its retail algorithms to help decide which new products to launch and the price of each new offer.
The non-public seller data involved include the sellers' revenues and the number of products ordered.
Such practices were prevalent in Germany and France, the company's biggest markets in the EU. Over 80 percent of online shoppers in Germany and more than 70 percent in France have purchased from Amazon in the last 12 months.
According to Margrethe Vestager, the European Commission's (EC) top antitrust official, such practices constitute illegal abuse of its dominance in online shopping.
Consequently, Amazon can marginalize third-party sellers and limit their growth.
Vestager added that Amazon distorts competition with its very specific business conduct.
Amazon disagreed with EC's assertions and vowed to make every effort to ensure the latter has an "accurate understanding of the facts."
While the EU believes that Amazon has breached EU antitrust rules based on preliminary findings, it wants to complete an investigation before imposing any penalties.
The probe could drag on for years and result in fines of up to 10 percent of its annual global sales, which is around $37 billion.
A second investigation is being into whether Amazon artificially favors its products or those of marketplace sellers who utilize the e-commerce giant's logistics and delivery services.
