Amazon.co.uk has lifted a ban, which now means third-party Marketplace traders can sell the same products on rival websites for less.
The online retailer previously didn't allow traders to price goods cheaper elsewhere. However, following trader complaints and an investigation by the Office of Fair Trading, rival sites can now undercut Amazon, reports The Guardian.
OFT opened the investigation into the 'price parity policy' last October to explore whether the policy was anti-competitive. Now that Amazon has lifted its ban, OFT says it will end its investigation early.
There are two million third-party traders using Amazon across the globe.
Cavendish Elithorn, the OFT senior director of goods and consumer, said: "We welcome Amazon's decision to end its Marketplace price parity policy across the EU.
"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 said it is looking to see if price parity rules are being used by other online businesses.