Amazon has altered its search algorithm in a way that would boost profits for the online retail giant despite pushback against the decision from within the company, The Wall Street Journal reported on Monday, September 16.
The change reportedly came last year with a tweak that prioritizes products that are more profitable for Amazon—including its own brands—in a departure from its long-standing practice of displaying products in order of relevance to a user’s search terms.
According to the Journal, Amazon’s retail business was behind the push for the product search system to take profitability into account. Programmers tasked with running the search algorithm—a group called A9—reportedly opposed the idea as running counter to the company’s ethos of putting the customer above all else.
Amazon’s legal team also raised concerns about the idea, according to the Journal, pointing out that the decision could draw scrutiny from the European Union, which had fined Google US$2.7 billion in 2017 for elevating its own comparison shopping service in its search results.
In an emailed statement to the Journal, the company wrote said it has not “changed the criteria we use to rank search results to include profitability.”
“Amazon designs its shopping and discovery experience to feature the products customers will want, regardless of whether they are our own brands or products offered by our selling partners,” Amazon spokeswoman Angie Newman added.
Featured News
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI