The European Union is expected to launch an investigation next year into allegations that Amazon favors its own products on its digital marketplace.

The probe aims to assess potential violations under the EU’s Digital Markets Act (DMA), which regulates major tech companies’ market power.

If Amazon is found to have breached the DMA, it faces potential penalties of up to 10% of its global annual revenue.

The decision to proceed with the investigation rests with Teresa Ribera, who will become the new EU antitrust chief next month, replacing Margrethe Vestager.

Amazon maintains it complies with the DMA, indicating ongoing constructive engagement with the European Commission.

Amazon’s shares fell by 3%, closing at US$196.91, following the report of the potential inquiry.

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