Key points
- Italian court reduces Amazon’s 1.13 billion euro antitrust fine.
- The Lazio administrative court upheld the core findings of anti-competitive practices.
- The court contested the 50% surcharge added to the original fine.
- The revised fine amount has yet to be officially announced, but estimates suggest it will be around 750 million euros.
An Italian court has significantly lowered the hefty antitrust fine levied against Amazon in 2021. The Lazio administrative court, in a ruling released on Tuesday, reduced the initially imposed penalty of 1.13 billion euros ($1.32 billion). While the court upheld the Italian competition authority’s central findings of Amazon abusing its dominant position in the e-commerce logistics market, it took issue with the methodology used to calculate the fine.
Specifically, the court challenged the 50% surcharge added to the base amount, ruling that the justification was insufficient.
The revised fine amount remains undisclosed pending official confirmation. However, based on removing the contested surcharge, suggest a final penalty of approximately 750 million euros. This represents a substantial reduction, although it is still a significant financial blow to the e-commerce giant.
The original fine, imposed for allegedly restricting competition, was one of the largest ever levied against a US tech company in Europe at the time.
Amazon responded to the ruling with a statement asserting its continued commitment to challenging the case. The company emphasized its significant contribution to the Italian economy, highlighting the role it plays in supporting thousands of small and medium-sized businesses (SMBs).
Amazon stated that over half of its annual sales in Italy originate from these SMBs, many of whom utilize Amazon’s services for shipping and logistics.
The ongoing legal battle underscores the complexities of regulating large tech companies in the European Union. The ruling, while offering some relief to Amazon, reinforces the ongoing scrutiny of the company’s business practices and their potential impact on competition within the Italian e-commerce sector.
The final figure of the reduced fine and potential further appeals will continue to shape the narrative.
