News Brief
Amazon Slapped With $1.3 Billion Fine By Antitrust Regulators In Italy For Abusing Market Dominance To Favour Own Logistics Service
- Italy's antitrust regulator has slapped a €1.13 billion ($1.28 billion) fine on Amazon for abusing its dominant position in the market and harming competitors in the e-commerce logistics service.
Amazon Fulfilment Centrre Italy
Italy's antitrust regulator has slapped a €1.13 billion ($1.28 billion) fine on Amazon for abusing its dominant position in the market and harming competitors in the e-commerce logistics service.
The anti-competition watchdog ruled that Amazon leveraged its position to favour its own logistics service to the detriment of competitors.
“Amazon holds a position of absolute dominance in the Italian market for intermediation services on marketplaces, which has allowed it to favor its own logistics service,” the Italian regulator said in a statement today, adding that Amazon’s conduct was “particularly serious.”
Amazon was giving sellers using its logistics service, Fulfillment by Amazon, advantages in terms of visibility and sales, including access to its “Prime” label.
"Among those benefits, the most relevant is the Prime label, which makes it easier to sell to the above 7 million most loyal and high-spending consumers members of Amazon’s loyalty program." Autorità Garante della Concorrenza e del Mercato (AGCM) ruled.
"Amazon has thus prevented third-party sellers from associating the Prime label with offers not managed with FBA." AGCM ruled.
The authority said access to those functions are critical for seller success. It also noted that third-party sellers using FBA are not subject to the same stringent performance requirements as non-FBA sellers. As such, they're less likely to be suspended from the platform if they fail to meet certain goals.
The Authority termed Amazon’s strategy as 'abusive' and 'particularly serious'.
AGCM also ordered that Amazon grant the privileges enjoyed by FBA sellers to all third-party sellers, provided they respect other rules and laws.
Amazon has said that it would appeal against the ruling.
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