Italy fines Amazon €1.13B for abusing market dominance
In response to: Italy's competition authority slapped a €1.13 billion fine on Amazon for abusing its dominant position in the market and harming competitors in the e-commerce logistics service.
The Autorità Garante della Concorrenza e del Mercato (AGCM) said on Thursday that Amazon was giving sellers using its logistics service, called “Fulfillment by Amazon,” advantages in terms of visibility and sales, including access to its “Prime” label. Amazon said it "strongly" disagrees with the AGCM's decision and will appeal.
The large fine comes amid increased antitrust scrutiny of Big Tech worldwide. The European Commission has opened an investigation similar to the Italian one that focuses on the rest of the EU.
“Amazon holds a position of absolute dominance in the Italian market for intermediation services on marketplaces, which has allowed it to favor its own logistics service,” the Italian regulator said in a statement, adding that Amazon’s conduct was “particularly serious.”
The AGCM also imposed behavioral measures, including ordering Amazon to set “fair and non-discriminatory standards” for third-party sellers to get advantages in terms of sales and visibility. A monitoring trustee will review these measures.
The watchdog launched its probe in 2019 over concerns that Amazon was giving sellers using its logistics service a better chance to appear as Amazon’s pick for users searching a product featured in a separate section of its website, the “buy box.” This is a pop-up window that shows customers additional products when they proceed with a purchase.
The Autorità Garante della Concorrenza e del Mercato (AGCM) said on Thursday that Amazon was giving sellers using its logistics service, called “Fulfillment by Amazon,” advantages in terms of visibility and sales, including access to its “Prime” label. Amazon said it "strongly" disagrees with the AGCM's decision and will appeal.
The large fine comes amid increased antitrust scrutiny of Big Tech worldwide. The European Commission has opened an investigation similar to the Italian one that focuses on the rest of the EU.
“Amazon holds a position of absolute dominance in the Italian market for intermediation services on marketplaces, which has allowed it to favor its own logistics service,” the Italian regulator said in a statement, adding that Amazon’s conduct was “particularly serious.”
The AGCM also imposed behavioral measures, including ordering Amazon to set “fair and non-discriminatory standards” for third-party sellers to get advantages in terms of sales and visibility. A monitoring trustee will review these measures.
The watchdog launched its probe in 2019 over concerns that Amazon was giving sellers using its logistics service a better chance to appear as Amazon’s pick for users searching a product featured in a separate section of its website, the “buy box.” This is a pop-up window that shows customers additional products when they proceed with a purchase.
Great news from Italy, about time someone stood up to these huge multinational companies.
Hope the next one is Starbucks
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