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Italy's competition authority fines Amazon €1.13B for allegedly abusing its market position and harming competitors in e-commerce logistics

Italy's competition authority announced Thursday it was slapping a €1.13 billion fine on Amazon for abusing its dominant position in the market … Source: AGCM .

Politico

Context & Ripple Effects

The decision follows Italy’s 2019 probe into seller benefits tied to Amazon logistics, making the fine the enforcement outcome of a long-running concern over whether marketplace access favored Amazon’s own delivery services. It also arrives weeks after AGCM pursued Amazon and Apple over alleged restrictions in Apple and Beats sales, signaling a broader focus on distribution gatekeeping.

The amount did not remain fixed: Italy later recalculated the 2021 penalty to €752M, underscoring that the underlying enforcement finding and the size of the sanction can move on separate tracks.

First-order effects

  • Amazon faces a €1.13B penalty and says it will appeal, while e-commerce logistics competitors gain an official finding that their market access was harmed.
  • AGCM puts Amazon’s treatment of third-party sellers and logistics providers at the center of its competition case rather than treating fulfillment as a purely internal operating choice.

Second-order effects

  • Marketplace operators that bundle seller benefits with affiliated services face sharper scrutiny of whether those terms disadvantage independent providers, particularly after AGCM’s separate action involving Amazon and Apple.
  • Independent logistics providers have a stronger regulatory basis to challenge arrangements that steer marketplace sellers toward a platform’s own delivery network.

Third-order effects

  • The case points toward more contestable gatekeeping in commerce platforms: regulators are examining how control of marketplace access can shape adjacent service markets such as fulfillment.
  • If enforcement continues across distribution channels, platform competition cases will increasingly turn on the terms attached to access—not only on consumer-facing prices.

The trend: Competition enforcement is shifting toward whether dominant platforms use marketplace control to advantage their own adjacent services.

Discussion

  • @carnage4life Dare Obasanjo on x
    Amazon has been fined $1.3B in Italy because businesses that use Fulfillment by Amazon are more likely to have their products show up as eligible for Amazon Prime and sales. I thought that was the entire point of Fulfillment by Amazon? https://www.politico.eu/...
  • @carnage4life Dare Obasanjo on x
    Amazon is a department store on the Internet. It seems weird for governments to try to enforce neutrality which items are part of sales, discounts or promotions in a store. I guess we kind of lose our minds when the target is an American big tech company in the EU.