Amazon hit with €1.1bn fine as EU probes mount up

Germany also has multiple antitrust probes into Amazon’s sales

Italy is the latest country to sanction Amazon, slapping it with a €1.1bn fine over anti-competitive accusations.

Amazon has been fined more than €1.1bn in an Italian antitrust probe that accused the online retail giant of “harmful” practices and abusing its market dominance in one of the largest penalties handed out by a European regulator.

The tech giant has expanded its shipping services in Europe, with the aim of persuading local businesses to launch their own trucking firms to exclusively transport freight for the company. The retailer also tied access to a set of exclusive benefits to the use of its own logistics, the regulator said.

“Amazon holds a dominant position in the Italian market for intermediation services on marketplaces, which Amazon leveraged to favour the adoption of its own logistics service,” the Italian antitrust regulator said.

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; Google, Facebook, Apple and Microsoft have drawn heightened scrutiny in Europe.

Amazon last month lost an EU court bid to prevent the EU and Italy from running parallel antitrust probes into concerns over how the firm treats sellers on its platform.

The European Commission is looking at how Amazon selects retailers for the highlighted buy box on pages that attract some 80% of sales. As well as how sellers can offer products to Amazon’s Prime loyalty programme, which offers free delivery, and if that effectively favours Amazon’s own products and sellers that use Amazon’s logistics and delivery service.

“We strongly disagree with the decision of the Italian Competition Authority and we will appeal,” Amazon said. “The proposed fine and remedies are unjustified and disproportionate.” 

The US company has drawn scrutiny in recent years for the vast trove of data it has amassed on a range of customers and partners, including independent merchants who sell on its retail marketplace, users of its Alexa digital assistant, and shoppers whose browsing and purchase history inform what Amazon shows them on its website.

The data protection commission of Luxembourg, where Amazon has its EU base, in July slapped the company with a record €746m fine for processing personal data in violation of the EU’s General Data Protection Regulation. 

Germany has multiple antitrust probes into Amazon’s sales. The UK is also examining similar issues to the EU.

- Bloomberg and Reuters