E-commerce giant Amazon (AMZN) could face a potential antitrust investigation by European Union regulators in 2025, according to a Reuters report. The regulator will probe whether the company violated the Digital Markets Act (DMA) by giving priority to its own-brand products over others in its online marketplace.
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The DMA was introduced last year to prevent big tech companies from using their market power to harm competition. If found guilty of violating the DMA, Amazon could face a fine of up to 10% of its global annual revenue.
It is worth mentioning that the European Commission, the EU’s antitrust watchdog, has been collecting information on how the company handles its own brands within the Amazon Store. While AMZN states that it doesn’t discriminate against third-party sellers, the data collected by the commission points to possible anti-competitive behavior.
AMZN’s Antitrust Issues Not Limited to EU
Importantly, Amazon’s antitrust issues extend beyond the EU. In September 2023, the Federal Trade Commission (FTC) and 17 state attorneys general filed a lawsuit against AMZN over anti-competitive practices. The company has been accused of using its dominant market position to inflate prices, overcharge sellers, and stifle competition.
Last month, a federal judge ruled that the FTC could proceed with this lawsuit, with the trial scheduled to begin in October 2026. This decision was a significant setback for Amazon’s efforts to have the case dismissed.
Is AMZN a Good Stock to Buy?
Turning to Wall Street, AMZN stock has a Strong Buy consensus rating based on 44 Buys and one Holds assigned in the last three months. At $239.10, the average Amazon price target implies an 20.53% upside potential.
