Friday, July 1

Italy fines Amazon 1,128 million euros for abuse of dominant position

The Italian regulator in charge of antitrust investigations, the AGCM (Autorità Garante della Concorrenza e del Mercato) has imposed a fine to Amazon worth 1,128 million euros.

According to this entity, Amazon has a position of “absolute dominance” in the Italian services market, “which has allowed it to promote its own logistics service, called Fulfillment by Amazon (FBA)”.

If you use FBA you have privileges, if not, no

Research has revealed that companies looking to access key benefits such as opt for the Prime label —With which they can participate in Black Friday sales— they need to use the FBA service on a mandatory basis.

That excludes salespeople who want to work with other logistics services, and puts them at a “crucial” disadvantage for their sales success. Customers using FBA also have other benefits, such as not be suspended from the platform so easily if they don’t achieve certain goals.

Third-party sellers using the FBA platform also receive a notice not to offer your products on other online platforms, or at least not to do it with the same scope.

For the AGCM this type of situation is “particularly serious” given its duration and the effects it causes. In addition to the fine of 1,130 million euros, this body has demanded that FBA customer privileges are extended to all vendors that they respect the rest of the rules and laws.

The firm created by Jeff Bezos already was fined in Italy – together with Apple – last month with another fine of 200 million euros for restricting the sale of Beats headphones by offering them only in certain stores.

Amazon received the largest fine in the history of the European Union in terms of privacy a few months ago: the breach of the GDPR caused a fine of 746 million euros.

More information | AGCM

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