Recently, Italy's antitrust regulator (ldQUO; AGCM”) Announced a 1.128 billion euro fine on Amazon for abusing its dominant market position.
AGCM issued a notice said, amazon in Italy market intermediary services platform (marketplace) dominated, amazon use of this advantage, support active on its platform sellers to use their own logistics service, limit of competitors, this is bad for competitors to provide logistics services, but also strengthen their dominant position.
In response, Amazon said it firmly opposed the Italian antitrust authority's decision and would appeal to a local court in order to avoid potentially large fines and changes to its business model, but the progress may not be good, as the EU antitrust has been very tough.
On November 23rd it emerged that Amazon had a relationship with Apple in the process of selling Apple and Beats products. Anti-competitive cooperation ” Italy's AGCM slapped Amazon with a €68.7 million antitrust fine. The two fines total nearly 1.2 billion euros.
Amazon's shares have fallen 8 percent from Nov. 19 to Dec. 15, wiping out about $140 billion in market value.
In fact, the antitrust investigation began in April 2019, when Amazon offered its own logistics service to third-party merchants on the platform. If they chose this service, merchants would gain traffic advantages, and their products would be placed in more prominent positions and higher search rankings, thus increasing their sales.
Italy's antitrust regulator noted that the ranking method has nothing to do with the quality and efficiency of logistics services provided by sellers, but only whether they subscribe to Amazon logistics, and decided to launch a preliminary investigation into whether Amazon is abusing its dominant position in e-commerce and logistics services.
According to incomplete statistics, Amazon has been fined more than 2 billion euros in recent years, and the antitrust investigations are mainly concentrated in the EU area.
In fact, antitrust investigations and fines against Internet and other tech giants are nothing new, especially in the European Union, which is almost the world's most aggressive region for antitrust sanctions. All told, the European Union has imposed severe penalties against Alpha Beta totaling 8.2 billion euros, or $8.9 billion.
Google, Apple and Facebook have all been subject to antitrust investigations in the past, and the tech companies have tried and failed to reach a settlement with the European Commission, while the prospects for Amazon's negotiations are not good either.
“ No rules, no square and square. Market economy is based on the rule of law and monopoly seriously disrupts the normal market order hinders fair competition and damages the legitimate rights and interests of consumers. Both the European Union and the United States are intensifying their anti-monopoly supervision, and the recent establishment of China's anti-monopoly Bureau has given a strong signal to the outside world.
Large Internet enterprises should think carefully about how to avoid being the target of anti-monopoly investigation in the face of the sudden escalation of global anti-monopoly. They should continue to contribute value to society and take into account their social responsibilities while realizing economic revenue.