Amazon receives €1.1 billion fine in Italy for exploiting its market dominance
Engadget reported that antitrust officials in Italy penalized Amazon €1.1 billion. The corporation is accused of abusing its dominance in the online shopping sector to persuade Italian retailers to utilize its Fulfillment by Amazon shipping service (FBA). This new ruling comes after Amazon and Apple were fined $228 million in Italy during November for unjustly suppressing Beats sales by confining them to specific shops.
According to Italy's antitrust authority (AGCM), retailers are required to utilize Amazon's FBA service if they want to gain crucial perks like the Prime label, which enables them to take part in Black Friday sales, Cyber Monday and other significant events. The report purported that Amazon has barred third-party sellers from linking the Prime branding with deals that are not administered by FBA.
Access to those functions, according to the authority, is critical for seller success. Furthermore, third-party merchants that use FBA aren't held to the same high standards as non-FBA vendors. Consequently, they are less likely to get kicked from the site if they don't accomplish specified objectives. Also, merchants who use Amazon's logistical services are deterred from selling their items on other online platforms.
The AGCM argued that the scale of the fine demonstrates the severity of Amazon's approach and its long-term nature. In addition to paying the penalties, Amazon has to adjust its business practices in Italy by providing the same advantages to all third-party merchants on its platform, regardless of whether they utilize Fulfillment by Amazon. Amazon has a year to comply with these decisions unless it wins its appeal.