Italy fine with more than 1,000 million euros to Amazon by dominant position

The Amazon Technology Company has been fined with the payment of 1,128 million euros for abuse of its "absolute dominant position in the Italian market" with

Italy fine with more than 1,000 million euros to Amazon by dominant position

The Amazon Technology Company has been fined with the payment of 1,128 million euros for abuse of its "absolute dominant position in the Italian market" with an "especially serious" strategy to harm competitors in the e-commerce logistics service, reports the Authority guarantor of the competition and market of Italy.

"Amazon occupies an absolute dominant position in the Italian market intermediation services market, which has allowed him to favor his logistics service, called FBA, among active sellers on the Amazon.It platform to the detriment of competitive operators in Said market and reinforcing its dominant position, "said the organism in a statement.

According to the antitrust authority, "companies have linked to the use of Amazon Logistics Service access to a set of essential benefits to obtain visibility and better sales prospects on Amazon. IT", among which stands out "the Prime Tag, that allows to sell more easily to the most faithful and highly dependent consumers ".

Prime "also allows you to participate in Amazon special events, such as Black Friday, Cyber Monday, Prime Day, and increases the likelihood that the seller's offer is selected as a showcase and shown in the Buy Box".

The Company, which has violated Article 102 of the Treaty on the Functioning of the European Union, also "has prevented third party sellers from associating prime label to non-managed offers" by FBA.

Antitrust research "has determined this functionality of the crucial Amazon.it platform for the success of sellers and for the increase of their sales", while "to third sellers who use FBA are not applied to the strict system of Measurement of performance to which Amazon submits sellers who are not FBA and whose non-compliance can also lead to the suspension of the seller's account. "

"In this way, Amazon has harmed competitive e-commerce logistics operators, preventing them from offering online sellers as quality service providers comparable to Amazon's logistics. These behaviors have thus increased the gap between Amazon's power and that of competition, even in the delivery of e-commerce orders, "is explained in the note.

In addition, "competitors markets have been harmed by abuse: due to the cost of duplication of warehouses, sellers who adopt Amazon's logistics are discouraged from offering their products on other online platforms, at least with the same range of products".

The Agency "considered that this abusive strategy was especially serious and, taking into account its duration, the effects already produced and the size of the group, decided to impose the fine of more than 1,000 million euros."

In addition, "in order to immediately restore competitive conditions in the reference markets," the antitrust authority imposed on Amazon behavioral measures that will be examined by a fiduciary supervisor. "

"Amazon should grant all the privileges of sale and visibility on its platform to all third sellers who know how to fulfill fair and non-discriminatory rules to process their orders, in accordance with the level of service that Amazon intends to offer consumers Prime and" A from one year of the decision, refrain from negotiating with carriers and / or logistical operators competitors and other contractual conditions applied to the logistics of their orders at Amazon.It, outside FBA ".

Date Of Update: 09 December 2021, 04:16

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