Italy’s antitrust regulator imposed a $1.3 billion fine against Amazon for supposed market dominance abuse, one of the highest penalties ever levied against a US technology company in Europe.
According to Italy’s watchdog, Amazon used its dominating position in the Italian industry for marketplace intermediation services to encourage sellers on Amazon to use its own logistics service Fulfillment by Amazon (FBA).
According to the authorities, Amazon linked FBA access to a number of unique privileges, like the Prime label, that help promote visibility and sales on Amazon.
“Amazon prohibits third-party sellers from linking the Prime mark with offers that are not managed through FBA,” the authorities stated.
The Prime label makes it easy to sell to Amazon’s more than 7 million most loyal and high-spending customers.
Additionally, the antitrust authorities stated that it would impose corrective measures that will be reviewed by a monitoring trustee.
The EU Commission stated that it worked closely with the Italian competition authority on the matter as part of the European Competition Network in order to ensure consistency with its two ongoing investigations into Amazon’s business practices.
“This investigation reinforces the Italian competition authority’s decision issued today regarding Amazon’s conduct in the Italian logistics markets,” the Commission stated.
Amazon stated that FBA is an “entirely optional service” that the vast majority of third-party sellers on Amazon do not employ.
“The proposed fine and penalties are disproportionate and unjustified,” Amazon stated.
Amazon stated that it “strongly disagreed” with the judgment of the Italian regulator and would appeal.
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