Italian regulators accuse Amazon of misusing its dominant position in the market.
Amazon’s widespread presence allows it to attract other sellers to use its platform for selling their products. However, in certain countries, this behavior could be seen as monopolistic. Italy, in particular, has taken action against Amazon.
The Italian antitrust authority, Autorità Garante della Concorrenza e del Mercato (AGCM), has fined Amazon 1.13 billion euros (around $1.28 billion USD). The fine was imposed because Amazon allegedly pressured sellers on its Amazon.it platform to use its Fulfilment by Amazon logistics services instead of potential competitors’ services. The AGCM stated that this action was detrimental to competing logistics services and helped strengthen Amazon’s dominant position in the market.
Amazon has contested the AGCM’s findings. An Amazon spokesperson told CNBC, “The proposed fine and remedies are unjustified and disproportionate.”
Italy’s antitrust watchdog said it had fined Amazon 1.13 billion euros ($1.28 billion) for alleged abuse of market dominance, in one of the biggest penalties imposed on a US tech giant in Europe. https://t.co/JRMEFNdx7a
— CNN (@CNN) December 9, 2021
The Amazon spokesperson emphasized that small and medium-sized businesses have various channels, online and offline, to sell their products, with Amazon being just one option. Amazon claims to support the growth of the 18,000 Italian small and medium businesses that sell on its platform and provides them with tools and resources, including options for self-managed shipments.
Some investors are concerned about the magnitude of the fine and fear it might lead to stricter regulations on Amazon’s operations and policies in other countries.
