Italy’s antitrust authority fined Amazon.com and Apple, Inc., more than 200 million euros ($225 million) for alleged anti-competitive cooperation related to the sales of Apple and Beats products, according to a Reuters report Tuesday (Nov. 23).
A 2018 deal between Amazon and Apple meant the companies limited which resellers could sell Apple and Beats products on Amazon.it, according to Italian Competition Authority officials, noting that arrangement violates European Union rules and affected competition on prices. Both companies plan to appeal the fines.
Amazon is facing a fine of 68.7 million euros (about $77.3 million), while Apple was hit with a penalty of 134.5 million euros ($151.2 million), and the authority said the company must end the restrictions that give retailers of genuine Apple and Beats products access to Amazon.it in a non-discriminatory manner.
“To ensure our customers purchase genuine products, we work closely with our reseller partners and have dedicated teams of experts around the world who work with law enforcement, customs and merchants to ensure only genuine Apple products are being sold,” Apple said in a statement, denying it did anything wrong.
Amazon said in its own statement that the fine was “disproportionate and unjustified.”
“We reject the suggestion that Amazon benefits by excluding sellers from our store, since our business model relies on their success,” Amazon said in its statement. “As a result of the agreement, Italian customers can find the latest Apple and Beats products on our store, benefiting from a catalogue that more than doubled, with better deals and faster shipping.”
Related: Report: Amazon Hopes to Settle EU Antitrust Cases
Meanwhile, Amazon is working to settle a pair of antitrust probes in the European Union. Reuters said Amazon has begun discussions with the European Commission (EC) and has offered to make concessions.
The EC can fine companies up to 10% of their turnover. That translates to a $38.6 billion fine for Amazon, based on its 2020 revenue. The commission charged Amazon last year with using its data and size to gain an unfair edge over the smaller competitors selling on its platform and explored whether the company used preferential treatment in its offers.
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