Italy fines Apple and Amazon 200 million euros for restricting sellers
The Italian Competition and Markets Authority finds that Amazon and Apple have disadvantaged independent sellers through Amazon. Only a limited number of sellers were allowed to sell Apple and Beats products through Amazon, which the Italian watchdog says is illegal.
The two companies had an agreement since October 2018 limiting the sale of the Apple and Beats products at Amazon, writes the Italian competition and market authority. Only Amazon itself “and certain pre-selected sellers” were allowed to sell the items through Amazon. These third parties were ‘chosen in a discriminatory manner’.
By pre-selecting selling companies, Amazon and Apple wanted to impose a “quantitative limit” on the number of sellers. In other words, the two companies wanted to ensure that there were only a limited number of sellers on Amazon, according to the watchdog. When selecting companies, the two looked at, among other things, the extent to which they could deliver abroad. Amazon and Apple wanted to limit the sale of Apple products via Amazon.it abroad as much as possible.
Limiting the number of sellers in this way is against European regulations and also meant that discounts on the products were limited. The trade restrictions of the two companies count heavily for the regulator, as Amazon controls much of the Italian sales market. Seventy percent of all consumer electronics are purchased from Amazon, of which 40 percent are through independent merchants through the platform.
The Italian watchdog AGCM therefore calls it crucial that buying on this platform is done fairly. Amazon must therefore pay a fine of 68.7 million euros; Apple will be fined EUR 134.5 million. Also, the two companies must end their restrictions. The Autorità Garante Della Concorrenza E Del Mercato cooperated with German and Spanish regulators who themselves have launched similar investigations.
Amazon and Apple do not agree with the fine and will appeal, they say to Reuters, among others. Apple says with the agreement it can guarantee that only genuine Apple and Beats products are sold. Amazon, for its part, says that thanks to the agreement, consumers received lower prices and less time to wait for their packages.