Italy’s Antitrust Authority Slams $225 million Fine on Apple and Amazon

Italy’s antitrust authority has slammed a fine of more than 200 million euros (US$225 million) on tech giants Amazon and Apple over allegations of anti-competitive cooperation in the sale of Apple and Beats products.

Both US tech giants entered a contractual agreement in 2018 which stated that only selected resellers were permitted to sell Apple and Beats products on Amazon.it which violated the European Union’s (EU) rules and harmed competition on prices.

Expectedly, the decision of the Italian watchdog to fine the two companies is not sitting well with them as both have revealed that they will appeal against the fines.

Amazon got fined 68.7 million euros while Apple got a larger share of 134.5 million Euros. They have also been ordered to remove the restrictions to enable retailers of original Apple and Beats products to Amazon.it without discrimination.

Apple has had a good share of Europe’s antitrust fines. Early last year, the tech giant got hit with a fine of 1.1 billion Euros by the French Antitrust body. In 2017, Google, another American giant got a record fine of $5billion over Android antitrust violation by the European Commission

Apple while responding said, “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 in a separate statement said it was in disagreement with the Italian Watchdog’s decision and described the proposed fine as “disproportionate and unjustified”.

Amazon said, “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.”