Amazon has been accused of bullying several Scottish booksellers out of business in a matter that has been sent over to the Office of Fair Trading. The bookshops often use Amazon for online business and as a part of their trade.
However, Amazon has now informed the bookshops that they are not allowed to offer the books online for a cheaper price even if they list them on their own websites. The online merchant has sent out an ultimatum to companies in violation that unless they sign the new agreement this Wednesday they will stand the chance of being unlisted.
As of now, around a dozen stores have complained to the Fair Trading Office that Amazon is unfairly controlling their choice to sell books to their consumers at lower prices.
The books can be offered for around 10% less on other websites because Amazon charges fees for its listing services, but the company claims that it has decided to take action in order to protect their low price guarantee to customers.
Chief executive of the Booksellers Association, Tim Godfray, stated that they were backing the OFT referral because booksellers are already worried about the appropriate way to set prices in a free price environment and the new restrictions need to be investigated.
Godfray continued to say that booksellers would like to see an identity placed on the internet market, and a formal statement of whether online websites are a free market in which a bookseller can sell another seller’s product at their own prices.
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