Italy’s Antitrust Authority wielded its regulatory power, slapping a hefty fine of 10 million euros on retail giant Amazon. The penalty was imposed for what the authority deemed as unfair trade practices, specifically targeting the eCommerce behemoth’s automatic enrollment of customers into recurring purchase options.
At the heart of the matter lies the pre-set “recurring purchase” option, strategically placed for a broad spectrum of products on the www.amazon.it website. This default setting, as highlighted by the Antitrust Authority, not only applies to items directly sold by Amazon but also extends to third-party sellers operating through the platform.
In its official statement, the authority elucidated that the automatic ticking of the recurring purchase icon serves as a subtle nudging mechanism, coaxing consumers into periodic purchases, even when such acquisitions might be unnecessary. This practice, the authority argued, severely curtails consumer choice, tipping the scales in favor of repetitive transactions driven more by convenience than genuine need.
Moreover, the Antitrust Authority condemned Amazon’s conduct as falling short of the expected standards of professional diligence. As a prominent player in the eCommerce landscape, Amazon is obligated, the authority contended, to design online purchasing interfaces that empower consumers to make informed and uncoerced commercial decisions. The automatic opt-in to recurring purchases, it concluded, starkly contradicts this principle.
In a noteworthy revelation, the Antitrust Authority divulged that the fine was directed at two entities within the Amazon conglomerate. Both the Luxembourg-based Amazon Services Europe and Amazon EU found themselves in the regulatory crosshairs, facing the financial repercussions of their alleged transgressions.
Source: Ansa Brasil
Featured News
T-Mobile Faces Class-Action Lawsuit Over Sprint Merger After Appeal Denied
May 16, 2024 by
CPI
Google Faces Backlash Over Introduction of AI-Generated Summaries in Searches
May 16, 2024 by
CPI
CMA Launches Phase 2 Probe into AlphaTheta’s Acquisition of Serato
May 16, 2024 by
CPI
NFL Executive Escapes Testifying in High-Stakes Trial Over Televised Games
May 16, 2024 by
CPI
EU Consumers Lodge Complaint Against Chinese Retailer Temu Over Content Rules Breach
May 16, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI