Amazon hit with $1.3 billion fine by Italy for abusing it’s position

Italy has imposed a heavy fine of 1.1 billion euros ($1.2 billion) on Amazon for abuse of market dominance. Milan Italy’s antitrust watchdog said on Tuesday it did fine Amazon 1.1 billion euros for alleged abuse of market dominance in one of the biggest penalties imposed on a US tech giant. Amazon said it strongly disagreed with the Italian regulators decision and would appeal. The Italian antitrust probe that accused the retail giant of “harmful” practices and abusing its dominant in one of the largest penalties handed out by a European regulator.

Italy’s watchdog said in a statement that Amazon.it had leveraged its dominant position in the Italian market for intermediation services on marketplaces to favor the adoption of its own logistics service Fulfillment by Amazon or popularly know as FBA.

The regulator claimed Amazon tied exclusive benefits, such as the Prime membership, to the use of exclusive benefits such as using FBA, getting promotions and visibility on its website. The blue logo of Prime helps users to navigate through listings, but third-party sellers that had their product tied to the promotion were not allowed to use third-party delivery services.

Amazon prevents third party sellers from associating the prime label with offers not managed with FBA. It says When sellers choose FBA, they do so because it is efficient, convenient and competitive in terms of price. The Amazon said in a statement that the proposed fine and remedies are unjustified and disproportionate and will appeal the decision.

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