Amazon's Perspective on the European Commission's First Review of the DMA

The review pointed to gains in areas such as browser choice screens, app store alternatives, and messaging interoperability, outcomes that reflect the DMA's origins as a framework designed for digital platforms.

But while the Commission celebrates these achievements, we believe the review fails to address the fundamental design flaws that make the DMA unfit for retail. It assesses our business through the wrong lens — we are the only retailer in scope, yet the framework applies criteria designed for search engines and other digital services that bear no resemblance to what we do.

It overlooks the practical consequences of compliance costs that have stalled investment, damaged the customer experience, and not made services more affordable. And it offers no resolution to the regulatory fragmentation and legal contradictions — including the unresolved tension between DMA data-sharing requirements and GDPR protections, and the German Federal Cartel Office's decision on Amazon Store features already subject to the DMA — that makes challenging for businesses to achieve full compliance with both all the regulations at at the same time

These were the main topics James Waterworth, Amazon's Director for Public Policy, explored at the EBS Digital Summit which took place in Brussels, where he joined a panel discussion on “The DMA Review: Can Europe Make Open Digital Markets Work in Practice?” and opened his comments by grounding the discussion in the physical reality of Amazon's European operations.

"Amazon is a key contributor to European industry and economy. Our business is fundamentally physical, not digital. We operate fulfilment centres, customer centres, and delivery networks across the continent," he said.

This framing set the tone for a broader discussion about regulatory design. "The great inconsistency of the DMA is that while there are larger retailers than Amazon in every single EU member state, we are the only retailer covered by the regulation. Simply put, the DMA was not built for retail," James noted.

Photo by EBS

While setting out Amazon's willingness to engage constructively with regulators, James went further, calling for clarity on next steps. "While the shortcomings were set out clearly in the review — covering issues such as compliance costs, procedural gaps, and the need for regulatory coherence across the EU Single Market — we now face a big unanswered question as to what the Commission is going to do about it. Businesses like Amazon can't operate in a regulatory void or in uncertainty. We need the Commission to urgently set out how it is going to resolve the flaws in the DMA, otherwise the review will just gather dust on a shelf."

Finally, James addressed the topic of the DMA’s prohibition on favoring rules, highlighting that these should not be extended to cover issues such as store design: "Every retailer curates its store. Storefront curation, promotional placements, branded navigation, and own-brand promotion are the online equivalent of window displays, endcaps, signage and curated shelves. Retailers draw from what makes them unique to offer differentiated curation; oftentimes that is based on what the Retailer alone offers, like private label and other products."

He pointed out that this expertise is central to what makes the Amazon Store valuable, for customers, brands, and sellers alike. "In our case given Amazon is a retailer that means continuing to ensure we can design the best experience for customers, which is also good for brands and sellers such as SMEs. That expertise is what makes our store valuable. We must preserve this human artistry and innovation as compliance with the DMA is discussed. We want to continue to engage in normal retail practices — the same ones every other retailer uses every day — not have them banned simply because they happen online. The consequences would not be abstract. A curated customer experience attracts more customers to the store, which benefits all sellers. A degraded, over-regulated store hurts consumers and the many SMEs who now account for roughly 60 per cent of all sales on Amazon."

Photo by EBS

James closed his speech connecting the debate to the broader economic context facing European households. "At a time when affordability is a priority for European consumers, degrading the retail experience on well-functioning online Stores does not serve their interests. Consumers benefit from competition between different retailers, not from homogenisation that removes the incentive to innovate."

As the Commission considers its next steps following the DMA review, the debate over how digital regulation applies to retail is still ongoing and this was at core of the discussion between James and Zach Meyers, Director of Research at CERRE that was taking place soon after the panel.