.Amazon preferences its products over competitors' in search, new research finds
Amazon-branded products rank higher than those of competitors in search results and are provided about 30% to 60% of the prominence of sponsored products, according to a new study circulated Monday by the National Bureau of Economic Research.The data, based on a random sampling of Amazon users' searches, lends evidence to allegations that Amazon products appear higher than their competitors.
"We can't go in there and verify how their algorithm works," Andrey Fradkin, a Boston University economist and one of the paper's authors, told the Washington Examiner."But we view this as one of the best tools that we have for studying a platform like Amazon, short of Amazon just giving us all their data." Fradkin wrote the paper, which has not yet undergone peer review, with an economist at Harvard Business School.
The Federal Trade Commission, alongside regulators from the United Kingdom and Germany, has placed Amazon under scrutiny for its handling of third parties, alleging it has hurt marketplace competition.Amazon has responded to the regulatory pressure by decreasing the number of products it offers under its own brands.
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