Apple, Amazon Slapped With Rs 1600 Crore Penalty For Killing Competition (But How?)
Italy’s antitrust authority has fined US tech giants Amazon.com and Apple Inc a total of more than 200 million euros ($225 million) for alleged anti-competitive cooperation in the sale of Apple and Beats products.
Contractual provisions of a 2018 agreement between the companies meant only selected resellers were allowed to sell Apple and Beat products on Amazon., the watchdog said, adding that this was in violation of European Union rules and affected competition on prices.
Amazon And Apple Will Have To Pay a $225 million Italian fine! But Why?
Italy’s antitrust authority has fined Amazon.com and Apple Inc a total of more than 200 million euros ($225 million) for alleged anti-competitive cooperation in the sale of Apple and Beats products.
Both Apple and Amazon have stated that they planned to appeal against the fines.
Amazon was fined 68.7 million euros and Apple was fined 134.5 million euros by the regulator.
The regulator ordered the businesses to remove limitations on retailers selling genuine Apple and Beats products on Amazon.
What Do The Companies Have To Say Regarding The Matter?
Apple denied any wrongdoing!
“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,”
Amazon stated the Italian authority’s decision was “disproportionate and unjustified,” and clearly disagreed.
“We reject the suggestion that Amazon benefits by excluding sellers from our store since our business model relies on their success. 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,”Amazon said.