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Amazon Reportedly in Talks With EU to Settle Antitrust Issues

Amazon has offered some concessions in preliminary antitrust talks with the EU, but there's no guarantee of success, a media report says.
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Retail/technology colossus Amazon  (AMZN) - Get, Inc. Report reportedly is engaging the European Union to settle two antitrust investigations.

The news came from Reuters, which cited knowledgeable sources.

Last November, the European Commission accused the Seattle company of unfairly using its power to promote its own products, giving it an advantage over other product sellers on its platform.

Another investigation focused on alleged preferential treatment of its own retail offers and those of marketplace sellers that are customers of its logistics and delivery services.

Amazon has offered some concessions in preliminary talks with the EU, the Reuters sources said. Settlement negotiations can take months to complete, and there is no guarantee of success.

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Amazon stock on Tuesday closed at $3,576.23, up 2.5%. The shares have gained 8% so far this year, trailing the S&P 500’s 25% advance as investors are concerned about valuation.

Morningstar analyst Dan Romanoff likes the company.

“We are lowering our fair value estimate for wide-moat Amazon to $4,100 per share from $4,200, based mainly on margin pressures arising from hiring and shipping challenges, which we think may pressure profitability in the near term and, to a lesser extent, the long term,” he wrote last month.

“Amazon reported third-quarter results that came in above the midpoints of its guidance range…

“We don’t see issues with the long-term story, as Amazon remains well positioned to prosper from the secular shift toward e-commerce and the public cloud over the next decade, but we do see a modest reset in terms of growth and profitability through the next several quarters.”