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Italy fined Amazon $ 1.3 billion and said it hurt other sellers

Milan — Italy’s antitrust authorities on Thursday fined Amazon € 1.13 billion ($ 1.3 billion) for misusing its dominant position over independent sellers on its website in violation of European Union competition rules. Was imposed.

Fines are one of Europe’s largest leverages against online retail giants, spreading especially in Italy during the blockade of the coronavirus and allowing residents to go to stores to buy items they consider unnecessary. lost.

Europe has sought to curb the largest tech companies, most famous for imposing billions of dollars in fines on Google in three antitrust proceedings. Its impetus is gaining momentum around the world as regulators and lawmakers take on digital giants over the blame for everything from intensifying competition to the inability to prevent harmful content from appearing on the platform. ..

Amazon “strongly opposes” the Italian regulator’s decision, calling the fine and the proposed remedy “unjustice and disproportionate” and appealing. He said more than half of Italy’s annual sales come from small businesses that have access to other channels to sell their products.

Italy’s AGCM officials say Amazon is demanding that third-party sellers use its own logistics service called Fulfillment by Amazon, harming its competitors and strengthening its position. I did.


Amazon Web Services suffers from a major outage

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The e-commerce giant also prevents third-party sellers from accessing Amazon’s Prime Loyalty Program. This makes it easy to sell to over 7 million most loyal and most spending consumers.

This means that such sellers are also excluded from special events such as Black Friday, Cyber ​​Monday, and Prime Day offers, making it less likely that the seller’s item will appear as a “Featured Offer.”

“Surveys have shown that these benefits are essential to raising awareness, increasing sales, and successful seller offers on Amazon.it,” regulators said. Said..

Authorities have ordered Amazon to grant sales benefits and visibility on Amazon.it to all third-party sellers who can meet the criteria for Prime services that need to be published.

Amazon is also facing antitrust pressure in the United States from federal governments, states and lawmakers. Washington DC accused the company of monopoly action and sued the company in May. The proceedings allege that Amazon’s advantage can push up the prices of online shoppers everywhere by imposing awkward conditions on third-party sellers on the platform.

Massachusetts Senator Elizabeth Warren also asked the Federal Trade Commission to investigate. Amazon’s $ 8.4 billion acquisition Metro-Goldwyn Mayer earlier this year

Italy fined Amazon $ 1.3 billion and said it hurt other sellers

Source link Italy fined Amazon $ 1.3 billion and said it hurt other sellers

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