Why Amazon's $1.3B antitrust fine has been reduced by Italy
What's the story
An Italian court has lowered a massive €1.13 billion ($1.32 billion) antitrust fine on Amazon, originally imposed in 2021 for allegedly abusing its dominant position in the country's e-commerce logistics sector. The Lazio administrative court upheld most of the competition authority's findings but said that it did not clearly explain why a discretionary 50% increase was added to the penalty.
Appeal
Amazon appealed against original decision
Amazon had appealed against the original decision, highlighting that over half of its annual sales in Italy come from small and medium-sized businesses (SMBs). The company said it has 20,000 Italian SMBs selling on its platform, including those who handle their own shipping. Despite the fine reduction, Amazon remains committed to defending its position in this case.
Fine recalculation
New fine likely to be around $800M
The new fine, which is yet to be determined, is likely to be around €750 million (about $800 million). Amazon was initially fined for restricting competition in e-commerce logistics services in Italy. Back then, it was one of the biggest fines on a US tech giant in Europe.