Rs 9600 Crore Penalty On Amazon For Abusing Market Dominance In This Country
According to Reuters Reports, Amazon has got a fine of €1.13 billion (about $1.28 billion).
Italian antitrust watchdog has fined amazon for abuse of market dominance!
According to the European country, the company has pushed third-party sellers to use its own logistics service Fulfilment by Amazon (FBA), in which the company replied that the proposed fines and remedies are “unjustified and disproportionate”.
A few days back 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.
What Do The The Regulator Claimed?
Amazon linked exclusive benefits, such as Prime membership, to using FBA, getting promotions and appearing on its website.
The blue logo of Prime helps users to navigate through listings, but third-party sellers that had their product tied to the promotion were not allowed to use third-party delivery services.
What Amazon Has to Say Regarding This?
Amazon denied any wrongdoing!
Amazon stated the Italian authority’s decision was “disproportionate and unjustified,” and disagreed.
The company responded that the partners are not obliged to do so, and a majority of sellers are not using FBA, without clarifying if they are tied to Prime or not. The company said they choose the service “because it is efficient, convenient, and competitive”.