Self-preferencing is when a platform that also sells its own products or services treats them better than those of rival businesses using the platform, for example by ranking them higher.
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Types of self-preferencing
- Ranking and display: search results or recommendations place the owner’s products above comparable rivals.
- Better terms for its own sales: the owner gives its own products features, services or fees that rival sellers cannot get.
- Use of rivals’ data: the owner uses data from third-party sellers to design or price its own competing products.
Key factors
- Rivals’ dependence on traffic. Harm is likeliest where rivals rely on the platform for customers and cannot replace that traffic with advertising or apps.
- Attention on the top results. Most users look only at the top results, so small changes in rank move a lot of demand.
- The platform’s business model. A marketplace that steers buyers to its own goods gives up commission from rivals, so the case for harm differs from ad-funded search.
- Commitment. Platforms gain from promising neutrality but are tempted to favour themselves once users are locked in, so rules supply the commitment.
Examples
Google. In 2017 the European Commission fined Google €2.42 billion for favouring its own shopping comparison service in search results. The EU Court of Justice upheld the fine in September 2024. On 23 July 2026 the Commission fined Google a further €460 million under the Digital Markets Act for ranking its own shopping, hotel, transport and sports results above rivals’.
Coupang. In 2024 South Korea’s Fair Trade Commission fined Coupang, the country’s largest online retailer, 162.8 billion won (about $121 million). It found that Coupang had manipulated search rankings and used employee reviews to push its own-brand products. Coupang appealed, and the case was still before the Seoul High Court in September 2026.
Frequently asked questions
Is self-preferencing illegal?
Not in itself. Under EU competition law it is abusive only when a dominant firm’s favouring harms competition. The Digital Markets Act goes further, banning designated gatekeepers from ranking their own products more favourably since March 2024.
What is the difference between self-preferencing and tying?
Tying makes customers who buy one product also take another. Self-preferencing gives the platform’s own product better treatment, such as a higher ranking, while rivals’ products stay available on the platform.
How do researchers detect self-preferencing?
By comparing where the platform’s own products rank against similar rival products with the same price, ratings and delivery speed. A consistent gap that paid placement does not explain points to favouring.
Does self-preferencing always harm consumers?
No. Own-brand products can be cheaper or better, and some studies find that banning platforms from selling their own goods would leave shoppers worse off. The harm depends on the form and the market.