An Italian court delivered a historic ruling on Tuesday, September 2, reducing the 1.13 billion euro ($1.32 billion) fine imposed on Jeff Bezos’ Amazon by Italy’s competition authority AGCM in 2021, Reuters reported.
While the ruling is a relief for Amazon, the Lazio administrative court upheld the regulator’s original decision after the company appealed. The court said the fine must be recalculated, arguing that the watchdog did not provide sufficient detail in its reasons for including a discretionary 50% increase.
In 2021, Amazon was fined its first major fine in Italy for restricting competition in e-commerce logistics services, alleging that it had restricted shipping services for sellers who did not use Fulfillment by Amazon (FBA). The company’s move harmed competitors and forced sellers to use FBA. At the time, it was one of the largest fines imposed by the Italian AGCM on an American tech giant in Europe.
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Amazon has vowed to defend its position in the case in a statement, saying, “More than half of all annual sales on Amazon in Italy come from small and medium businesses (SMBs).”
“We have 20,000 Italian SMBs that sell on Amazon, including sellers that manage shipment themselves, and we constantly invest to support their growth,” the company added.
This article includes reporting from Reuters.