Italian regulator fines Amazon US$1.28 billion for abusing market dominance

The country’s antitrust watchdog said the US tech giant abused its dominant position by promoting its own logistics service on its Italian platform

Calling the penalty ‘unjustified’, Amazon said it would appeal the decision

Reading Time:1 minute

Amazon said the Italian watchdog’s fine is ‘unjustified and disproportionate’. Photo: AP

Published: 5:55pm, 9 Dec 2021

Italy’s antitrust watchdog said on Thursday it had fined Amazon 1.13 billion euros (US$1.28 billion) for alleged abuse of market dominance, in one of the biggest penalties imposed on a US tech giant in Europe.

Amazon said it “strongly disagreed” with the Italian regulator’s decision and would appeal.

Global regulatory scrutiny of tech giants has been increasing after a string of scandals over privacy and misinformation, as well as complaints from some businesses that they abuse their market power.

As well as Amazon, Alphabet’s Google, Facebook, Apple and Microsoft have drawn heightened scrutiny in Europe.

Italy’s watchdog said in a statement that Amazon had leveraged its dominant position in the country’s market for intermediation services on marketplaces to favour the adoption of its own logistics service – Fulfilment by Amazon (FBA) – by sellers active on Amazon.it.

The authority said Amazon tied to the use of FBA access to a set of exclusive benefits, including the Prime label, that help increase visibility and boost sales on Amazon.it.

Select Voice

Choose your listening speed

Get through articles 2x faster

1.25x

250 WPM

Slow

Average

Fast

00:0000:00

1.25x