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Chronicles

The story behind the story

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

Politico : Source: AGCM .

Politico

Context & Ripple Effects

Italy’s case follows a 2019 probe into alleged logistics-linked seller benefits, turning a long-running concern about Amazon’s treatment of third-party sellers into a record penalty. Italy had also recently pursued Amazon alongside Apple over alleged restrictions in product distribution, placing the logistics decision within a broader enforcement push against platform conduct.

The immediate dispute is not Amazon’s retail scale in isolation but the alleged use of its position in e-commerce logistics to disadvantage rivals. A later recalculation of the 2021 penalty shows that the case’s financial outcome remained subject to administrative review.

First-order effects

  • Amazon faces a €1.13B penalty while it pursues an appeal, and logistics competitors identified by AGCM gain a regulatory finding centered on alleged harm to their ability to compete.
  • AGCM establishes that Amazon’s e-commerce logistics practices, rather than only its marketplace operations, can be the focus of a dominant-position case.

Second-order effects

  • Amazon’s logistics terms for third-party sellers face greater antitrust scrutiny in Italy, raising the stakes for how marketplace and fulfillment services are offered together.
  • Other large platforms face a clearer Italian enforcement signal after the regulator’s recent Amazon-and-Apple distribution case, particularly where access to a platform is tied to favored commercial channels.

Third-order effects

  • If this enforcement pattern persists, competition policy will increasingly test whether platform gatekeepers can steer business toward their own adjacent services without foreclosing independent providers.
  • The case points toward more contestable gatekeeping in digital commerce, with enforcement focused on the links between marketplaces and the services sellers need to reach customers.

The trend: European platform enforcement is extending from marketplace access to the ways dominant platforms connect that access with logistics and other adjacent services.

Discussion

  • @jldastin Jeffrey Dastin on x
    Italy fined @Amazon $1.3 billion for allegedly using a dominant position in the country to push its warehousing service, Fulfillment by Amazon, to merchants on its platform. The company is appealing the decision. https://www.reuters.com/...
  • @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.
  • @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/...