The EU’s executive branch has launched another competition inquiry – this time into Amazon’s dominant market position in electronic books. European commission is now investigating clauses in contracts between the tech giant and publishing houses, which restrict publishers from offering better terms to Amazon’s competitors. In some cases, the clauses even require publishers to disclose the terms offered to Amazon’s rivals.

The EC recognizes that Amazon has developed a successful business offering consumers a comprehensive service. However, the body is going to make sure that the company’s arrangements with publishers are not harmful to consumers. This is why the Commission launched an investigation to find out if such concerns are justified. The EC inquiry will focus on English and German electronic books, which are the largest markets in Europe. It should be noted that Amazon also produces the popular Kindle ebook reader.

Recently, the EU’s executive branch also launched formal investigations into Google and its dominance of Internet search, as well as the into tax affairs of Amazon in Luxembourg and Apple in Ireland. The US is trying to negotiate an ambitious transatlantic free trade deal with the European Union and was warned earlier in 2015 against European protectionism hurting the American tech sector.

In response, Amazon said it was confident that its agreements with publishers were legitimate and in the best interests of consumers. The company expressed the will to cooperate with the Commission during the investigation.

By the way, the relationship between publishing and tech sectors has already drawn the attention of the EC before – 2 years ago, the Commission investigated Apple and its deals with five publishers, who were forced into a series of concessions. They have also been on the back foot in the American courts, found liable for conspiring to breaching competition laws. Eventually, one US appeals court judge noted how unusual it was to enforce antitrust laws against Apple in a way that blocked their efforts to challenge Amazon’s near-monopoly.

As for Amazon, the company also faces pressure from the European Commission over tax, eventually becoming the first high-profile online company to reconfigure its European tax structures in order to make sure that sales from major EU markets are no longer diverted through Luxembourg.