Italy fines Amazon USD 1.3 billion for abusing market position
Italy fines Amazon USD 1.3 billion for abusing market position
Occurred: December 2021
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Amazon was fined USD 1.3 billion for abusing its market position by giving preferential treatment to third-party sellers that use its logistics service, including a higher chance of being featured on its Buy Box system.
Italy's antitrust watchdog the Autorità Garante della Concorrenza e del Mercato (AGCM) accused Amazon of unfairly promoting its own logistics service, Fulfillment by Amazon (FBA), to the detriment of third-party sellers on its platform, including giving preferential treatment to sellers using FBA, including increasing the likelihood of FBA users being featured in the Buy Box on product pages.
The Italian regulator argued that Amazon's practices created a vicious circle, compelling sellers to use FBA to remain competitive on the platform, despite potentially higher costs, thereby allowing Amazon to leverage its dominant position in the e-commerce market to rapidly expand its presence in the logistics sector.
Amazon said it strongly disagreed with the decision, calling the fine and remedies "unjustified" and "disproportionate", and said it would appeal.
Autorità Garante della Concorrenza e del Mercato (2021). Sanzione di oltre 1 miliardo e 128 milioni di euro ad Amazon per abuso di posizione dominant | Report (pdf)
https://edition.cnn.com/2021/12/09/tech/amazon-italy-fine/index.html
https://techcrunch.com/2021/12/09/italy-fines-amazon-1-3-billion-for-abusing-its-market-position/
https://www.politico.eu/article/italy-fines-amazon-e1-13-billion-for-abusing-market-dominance/
https://www.cbsnews.com/news/italy-fines-amazon-1-3-billion-charging-it-with-hurting-other-sellers/
https://www.wsj.com/articles/amazon-fined-1-3-billion-in-italian-antitrust-case-11639043714
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Type: Incident
Published: July 2024