Italy considers that it uses its dominance position in electronic commerce to impose its own logistics service
1,128 million euros: that is the amount of the gigantic fine that the Italian Competition Guarantor Authority has imposed on Amazon this Thursday for using its position of absolute dominance in the Internet sales market to favor its own logistics service and thus damaging other companies. This state body considers that the multinational forces firms that offer their products on their website to also contract distribution, by giving them greater visibility and sales prospects with access to initiatives such as Black Friday or the Prime customer loyalty program . In addition to the payment of the millionaire fine, Amazon must immediately end the practices that have led to the sanction.
The e-commerce giant responded to the announcement of the sanction by assuring that it was “unjustified” and “disproportionate” while announcing an appeal. “More than half of all annual sales in Italy are generated by small and medium-sized companies and their success is at the center of our economic model,” explained the multinational in a note, recalling that it works with 18,000 Italian firms, which have «Multiple channels to sell your products both in person and through the Internet. Amazon is just one of your options. ”
On the other hand, the European Union applauded the decision taken by the Italian Competition Authority, in whose investigation it has had the support of Brussels. “It is an example of coordination,” reported the European Commission, noting that there has been joint work through the European network of agencies that are responsible for monitoring that there are no business monopoly situations in the territory of the 27. The European Commission has in the past had litigation with the company founded by Jeff Bezos, which it accused of alleged abuse in the use of data from other companies and tax evasion, although later the General Court of the European Union gave it the reason to the multinational.
The Italian Authority Guarantor of Competition justifies the millionaire sanction because Amazon has violated article 102 of the Treaty on the Functioning of the European Union, which persecutes companies that carry out “abusive exploitation of a dominant position in the market.” Those harmed by their performance would be mainly both the selling companies that do not want to use their distribution service and the other logistics firms that are prevented from proposing themselves as competitors. In this way, Amazon would have further increased its leadership in the Internet sales market and at the same time transferred that advantageous position to the shipment and delivery of products to buyers’ homes.
As a result of the abuse of its dominant position, other Internet sales portals would have been affected as well, since it is inconvenient for sellers who use Amazon to be present on other similar web pages because they must duplicate the entire logistics and distribution system.
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