Online retailer Amazon has altered its controversial pricing policy which bans its Marketplace traders from offering products cheaper elsewhere. The decision comes after an Office of Fair Trading (OFT) investigation into the policy as a result of numerous complaints.

The Federal Cartel Office in Germany had also been investigating Amazon over the policy.

"We welcome Amazon's decision to end its Marketplace price parity policy across the European Union," said Cavendish Elithorn of the OFT. "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."