Amazon.com Inc. was warned by Germany’s antitrust watchdog that price controls for retailers on its marketplace are likely to violate national and European Union laws.

Antitrust authorities in Germany have warned e-commerce giant Amazon that its price control for retailers on its market place breach competition laws in the country and across the EU. The company uses algorithms and statistical models to calculate price caps for products,

Amazon.com Inc. (AMZN) has been warned by Germany’s antitrust regulator over the e-commerce giant’s price controls for sellers on its platform. Amazon’s shares fell 0.40% in pre-market trading on Monday.