Dec 9, 2021 - World

Italy fines Amazon $1.3 billion for violating antitrust law

The outside of Amazon's Ariete 1 sorting warehouse in Arzano, Italy, in March 2021.

Photo: Ivan Romano/Getty Images

Italy's antitrust regulator fined Amazon $1.3 billion on Thursday, claiming an investigation unveiled that it abused its dominant position in the market by favoring third-party sellers that used its logistics services.

Why it matters: It comes amid a wave of antitrust law enforcement by European nations against Big Tech companies.

What they're saying: "The investigation showed that such benefits are crucial to gain visibility, to boost sales and, in turn, to the success of sellers’ offers on," the Italian Competition Authority said in a press release.

  • "In addition, third-party sellers using [Fulfilment by Amazon] are not subject to the stringent performance indicators that Amazon applies to monitor the non-FBA sellers’ performance, which can ultimately lead to the suspension of non-compliant sellers’ account on," the regulator added.

The big picture: The Italian Competition Authority says it is also requiring the company to offer "fair and non-discriminatory standards" to third-party listings.

  • Amazon said it "strongly disagreed" with the Italian regulator's decision and would appeal, according to Reuters.

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