ICLE Scholars Note Amazon’s Challenged Offer-Selection Filters Can Benefit Consumers
BRUSSELS (2 June 2025) – Today’s decision by the German Federal Cartel Office (FCO) to sanction Amazon for its use of “offer-selection filters” to determine third-party sellers’ eligibility for the Buy Box fails to appreciate the consumer benefits that such practices enable, scholars with the International Center for Law and Economics (ICLE) said.
Publication of the FCO’s preliminary views caps a multi-year investigation of Amazon’s use of the filter algorithms, which surface the most competitive offers and demote third-party listings deemed uncompetitive. The FCO characterized the filters as “price coordination”, akin to an impermissible most-favoured-nation (MFN) clause—a contractual obligation that prevents a seller from offering lower prices on rival platforms.
But ICLE scholars note the filters instead aim to reduce consumers’ search costs, thereby preserving trust in independent merchants. Also, unlike an MFN, Amazon’s system does not restrict sellers from listing lower prices elsewhere. Instead, it benchmarks a seller’s listing against external market prices to determine Buy Box eligibility.
ICLE Director of Competition Policy Dirk Auer offered the following comment:
We want to see a robust and competitive digital market that benefits European consumers, but the FCO’s continued focus on Amazon’s offer-selection filters raises significant questions about regulatory consistency within the EU. These filters are a pro-consumer marketplace design choice, distinct from anticompetitive MFNs. Challenging practices that align with EU commitments and the DMA could undermine the very purpose of harmonized digital market regulations and send a concerning signal about the extent to which national authorities can operate outside of agreed-upon EU frameworks.
To schedule an interview with Dirk about this investigation, contact Jim Fellinger at [email protected].
About ICLE
The International Center for Law & Economics is a nonprofit, nonpartisan research center working with a roster of more than eighty academic affiliates and research centers from around the globe. ICLE scholars promote the use of law and economics methodologies to inform public policy debates.