- Ad Effectiveness & ROI
- Article
Algorithmic Trade-Offs: How Regulating Recommendations Shapes E-Commerce Markets
What happens when governments regulate how platforms recommend products? A new study examining Amazon's compliance with the UK’s Competition and Markets Authority rule—banning the use of Prime eligibility to determine “Featured Offers”—finds both gains and trade-offs. While the regulation did reduce self-preferencing and boosted price competition, it also led to fewer consumer purchases and lower product ratings, especially in niche markets.
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