Canada’s

Competition Bureau

is set to proceed with its investigation into

Amazon.com Inc.

’s pricing policies for its Canadian online marketplace to determine whether the

e-commerce

giant’s rules for sellers constitute an abuse of dominance under the Competition Act.

The Gatineau, Que.-based antitrust watchdog, which enforces Canada’s competition legislation, on Tuesday said it has obtained a federal court order requiring Amazon to “produce records and information relevant to the investigation.”

The Competition Bureau first initiated its probe into Amazon’s pricing policies in August 2020, when it invited Canadian sellers to share their experiences with the agency.

Specifically, Amazon’s Marketplace Fair Pricing Policy implemented in 2017, which lets sellers dictate their prices, is under scrutiny. The rules allow Amazon to punish sellers if they take certain actions, such as setting a “significantly higher” price than recently offered on Amazon and other marketplaces.

“Amazon regularly monitors the prices of items on our stores … and compares them with other prices available to our customers. If we see pricing practices on a store offer that harms customer trust, Amazon can remove (it) … or in serious or repeated cases, suspend or terminate selling privileges,” the policy said.

The bureau said it is trying to establish whether the policy allows Amazon to charge sellers higher fees and, in turn, leads sellers to set higher prices for their goods. It will also try to determine whether the rules hinder the “entry or expansion” of existing or potential rivals by impeding sellers from offering lower prices and if they reduce price competition among online marketplaces.

Amazon said its tools are designed to enable customers to make informed purchase decisions and maintain their trust.

“At Amazon, we designed our store and policies to help customers find great products at low prices, with a variety of fast and convenient delivery options, and we will continue to collaborate with the Competition Bureau to demonstrate this,” a spokesperson said.

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The bureau is separately investigating whether Amazon’s marketing practices violate the deceptive marketing provisions of the Competition Act. It is looking into potentially false or misleading claims made by the company that could affect the placement and rank of products displayed on their marketplace.

• Email: ylau@postmedia.com