Italy fines Amazon €1.1 billion for abuse of market dominance

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The competition defense body in Italy announced this Thursday (9) a 1.1 billion euro (BRL 6.9 billion) fine against Amazon for abuse of market power, one of the largest penalties ever imposed against a North American technology company in Europe.

Amazon said it “strongly disagrees” with the decision and will appeal.

Italy’s antitrust agency said that Amazon took advantage of its dominant position in the local intermediation market in marketplaces to favor the adoption of its own logistics services, known as “Fulfilment by Amazon (FBA)”, by sellers of its site.

Officials said Amazon has linked FBA use to accessing a number of benefits, including the use of the “Prime” seal, which improves product visibility and sales on Amazon.it.

“Amazon prevents sellers from associating with Prime with offers that are not met by the FBA,” Italian officials concluded.

Amazon has stated that FBA “is a completely optional service” and that most marketplace vendors don’t use it. “The fine and corrective actions are unjustified and disproportionate,” said the company.

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