Amazon fined $1.3 billion in Italy for violating competition rules

  The company is accused of exploiting its dominant online marketing position against independent sellers (Getty)
A fine of 1.13 billion euros, equivalent to 1.3 billion dollars, was imposed by the Italian anti-monopoly authority on Thursday Email Marketing Giant Amazon, accusing the company of exploiting its dominant online marketing position against independent sellers on its website, in violation of EU competition rules. 

The fine is one of the largest fines imposed in Europe against a giant Retail The Internet, which has expanded in particular in Italy during the closure due to the Corona virus, which prevented the population from going to stores to buy goods considered non-essential.

Interval “AmazonIt “strongly objects” to the decision and will appeal it, describing the proposed fines and compensation as “unjustified and disproportionate.”

She noted that more than half of annual sales in Italy come from small and medium-sized companies that have access to other channels to sell their goods.

The Italian competition and market regulator said Amazon had asked third-party sellers to use its own logistics service, called Fulfillment by Amazon, to the detriment of competitors and strengthening its position.

The e-commerce giant also prevents third-party sellers from accessing Amazon’s Prime Loyalty program, “which facilitates selling to more than seven million consumers who are the most loyal (for Amazon products) and high spenders.”

This means that these sellers are also excluded from company-specific events, including Black Friday, Cyber ​​Monday and Prime Day deals, which also reduces the chances of sellers’ merchandise appearing as a “special offer.”

“The investigation showed that these benefits are essential for gaining visibility, for boosting sales, and therefore for the success of sellers’ offerings on Amazon It,” the Italian agency said.

The Italian Competition and Market Regulatory Authority has instructed Amazon to grant sales and visibility benefits on Amazonit to all third-party sellers who are able to meet its own Prime Service standards and which they must publish.

(Associated Press)