Amazon Marketplace sellers now free to undercut online giant's own prices Sellers are now free to undercut Amazon's own prices if they choose The OFT had been investigating the issue over concerns the pricing restrictions were 'potentially anti-competitive' By Camilla Canocchi Internet shoppers should see the prices they pay on Amazon Marketplace come down after the online giant announced today it will ditch a controversial policy banning sellers from undercutting Amazon's own prices. After pressure from an investigation by the Office of Fair Trading, Amazon has decided to end 'price parity' in the European Union from tomorrow. That means traders on its amazon.co.uk Marketplace platform will be able to set the prices they wish. The OFT, which opened an investigation into the matter last October following complaints from sellers since early 2010, was 'concerned that the policy was potentially anti-competitive'. Lower prices: Traders on Amazon Marketplace platform will be able to set the prices they wish When buying goods on Amazon, customers are offered the possibility to purchase them from Amazon itself or other sellers. The prices offered by sellers are attractive as they are shown without delivery charge, but in reality, once the postage is added, there is no difference in price and therefore shoppers often end up buying from Amazon directly. The regulator feared the policy could curtail the entry of potential new sellers as well as affect the prices which sellers set on platforms including their own websites, resulting in higher prices for consumers. But following Amazon's decision to end the policy, the OFT has now dropped the investigation and said it has not reached a decision as to whether there has been an infringement of competition law. The regulator has cooperated closely with the German Federal Cartel Office which has been running a parallel investigation and recently made a related announcement, the OFT said. Threshold: Amazon has recently imposed £10 minimum order to qualify for its 'Free Super Saver Delivery' "We welcome Amazon's decision to end its Marketplace price parity policy across the European Union," said Cavendish Elithorn, OFT senior director of goods and consumer. As Amazon operates one of the UK's biggest e-commerce sites, the pricing on its website can have a wide impact on online prices offered to consumers elsewhere. We are pleased that sellers are now completely free to set their prices as they wish, as this encourages price competition and ensures consumers can get the best possible deals. The OFT recommends that other companies operating similar policies review them carefully. Businesses concerned that they are being prevented from setting their own prices should not hesitate to contact the OFT. Amazon has recently imposed £10 minimum order to qualify for its 'Free Super Saver Delivery'. The threshold has some exceptions - orders which include books, DVDs, Blu-rays, music, video games and software products are still eligible for free delivery regardless of total order cost. Last month Amazon announced a surprise dip in earnings as it swung to a loss of $7million (£4.5million) for the second quarter of the year, down from a $7million profit for the same period of last year. The online giant was among several US corporations criticised for avoiding taxes in the UK in the last two years. The company paid £2.4million tax last year despite a revenue of £4billion. Amazon's sites in the US and elsewhere will continue to enforce price parity.