World e-Com Blog|EN

Amazon fined by AGCM for 1.1 billion euros

Amazon received a record €1.13 billion fine from Italian regulator AGCM. According to the regulator, the e-commerce giant, which provides logistics services to Amazon, abused its dominant market position and began to put a lot of pressure on competitors.

Fulfillment Amazon (FBA) is a service offered to partner sellers on the platform. Sellers can send their goods to Amazon warehouses, and the company will take care of the delivery process, including returns and customer service. According to the Italian AGCM, Amazon's service violated competition rules in the European Union.

Non-FBA vendors have been affected.

Amazon disadvantages third-party sellers who don't use its FBA logistics branch, the regulator says. Sellers who set up their own fulfillment don't get certain benefits, such as increased visibility on the site and access to its main card. Thus, competitors suffer, says the AGCM. The Italian regulator also plans to make corrections to combat the violations, and the company will be under long-term surveillance.

Amazon: "Sellers don't have to use FBA'

Amazon said in a statement that they "strongly disagree" and intend to appeal the decision, adding that sellers are not required to use their FBA services: "SMBs have multiple channels to sell their products both online and offline: Amazon is just one of those options.

'A retailer has several channels to sell products, Amazon is just one of them. Amazon had a record year last year, with revenues of more than 340 billion euros, up nearly 40 percent. Net income was also up more than 80 percent over the previous year.

The highest fine in Europe.

The billion-euro fine is the largest fine an e-commerce company has ever received in Europe. Just last month, Amazon was fined nearly 70 million euros in Italy, along with Apple, which was fined more than 130 million euros. The previous fine was aimed at the two tech giants' unfair cooperation in selling Apple products.