Italy fines Amazon $1.3 billion, saying it hurts other sellers

Italy fines Amazon $1.3 billion, saying it hurts other sellers

Milan — Italy’s antitrust authority on Thursday fined Amazon 1.13 billion euros ($1.3 billion), accusing the corporate of exploiting its dominant place towards unbiased sellers on its web site in violation of European Union competitors guidelines.

The positive is without doubt one of the largest leveraged in Europe towards the net retail large, which expanded particularly in Italy throughout a coronavirus lockdown that prevented residents from going to shops to purchase objects thought of nonessential.

Europe has sought to rein in large tech firms, most famously by slapping Google with multibillion-dollar fines in three antitrust circumstances. The push is gaining steam worldwide as regulators and lawmakers tackle digital giants over accusations of every part from stifling competitors to failing to stop dangerous content material from showing on their platforms.

Amazon mentioned it “strongly disagreed” with Italian regulator’s choice and would attraction, calling the fines and proposed treatments “unjustified and disproportionate.” It famous that greater than half of annual gross sales in Italy are from small and medium companies which have entry to other channels to promote their items.

Italy’s AGCM authority mentioned Amazon has required that third-party sellers use its personal logistics service, known as Fulfilment by Amazon, harming opponents and strengthening its personal place.

The ecommerce large additionally prevents third-party sellers from having access to Amazon’s Prime loyalty program, “which makes it easier to sell to the more than 7 million most-loyal and highest-spending consumers.”

Meaning such sellers are also excluded from particular occasions, together with Black Friday, Cyber Monday and Prime Day gives, thereby additionally lowering the probabilities that the sellers’ objects will seem as a “featured offer.”

“The investigation showed that such benefits are crucial to gain visibility, to boost sales and, in turn, to the success of the sellers’ offers on,” the regulator mentioned.

The authority has ordered Amazon to grant gross sales advantages and visibility on to all third-party sellers in a position to meet the requirements of its Prime service, which it should publish.

Amazon additionally faces antitrust stress within the U.S. from the federal authorities, states and lawmakers. Washington, D.C., sued the corporate in Might, accusing it of monopolistic habits. The swimsuit claims Amazon’s dominance permits it to impose onerous phrases on third-party sellers on its platform that drive up costs for internet buyers in all places.

Senator Elizabeth Warren of Massachusetts has additionally requested the Federal Commerce Fee to analyze Amazon’s $8.4 billion acquisition of Metro-Goldwyn-Mayer earlier this 12 months.

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