Amazon faces a billion dollar fine for abusing market dominance

Updated : Dec 10, 2021 08:23
|
EJ Biz Desk

Amazon has been fined $1.3 billion by antitrust regulators in Italy.The fine is one of the largest leveraged in Europe against the online retail giant.

According to the antitrust watchdog, Amazon has abused its dominant market position and pushed third-party sellers to use the company’s logistics service ‘Fulfillment by Amazon' (FBA).

Also watch | Metro Brand IPO opens today; Will Rakesh Jhunjhunwala have a 'healthier' experience?

The Italian authority concluded that third-party sellers don’t get the same treatment if they’re leveraging FBA or using their own logistics stack.

The 250 page report states that the e-commerce giant also prevents third-party sellers from gaining access to Amazon's Prime loyalty program, “which makes it easier to sell to the more than seven million most-loyal and highest-spending consumers."

Amazon said it “strongly disagreed” with the decision and would appeal, calling the fines and proposed remedies “unjustified and disproportionate

 

Amazonecommerce

Recommended For You

editorji | Business

Sensex falls 429 points, Nifty slips 173 points after RBI rate hike

editorji | Business

RBI raises repo rate by 25 bps to 5.50%, shifts policy towards tightening

editorji | Business

GST rates likely unchanged as 57th Council meeting focuses on reforms

editorji | Business

Sensex gains 685 points, Nifty rises 220 points to cross 22,700

editorji | Business

Sensex gains 473 points, Nifty rises 134 points as markets stage recovery