Italy's antitrust authority, the Italian Competition Authority (AGCM), has slapped Apple and Amazon with a combined €203 million (over $225 million) in fines for alleged conspiracy over the sale of Apple and Beats products on Amazon Italy. Antitrust allegations against Apple have been coming thick and fast of late, with the most high-profile of those leveled by Epic Games last year. While the judgment, in that case, was primarily seen as a victory for Apple, the judge did rule that Apple must allow third-party app payment options unrelated to the App Store.

Amazon itself has also been under antitrust investigation in Europe after the European Commission in 2019 opened a probe to assess whether the company's use of sensitive data from independent retailers who sell on its marketplace is in breach of EU competition rules. The organization has since sent a 'Statement of objections' to Amazon for the use of independent seller data to benefit its own in-house brands and opened a second investigation into its business practices. Already swamped with multiple ongoing antitrust investigations, the latest development only adds to Apple's and Amazon's growing headache.

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Apple and Amazon have been fined for allegedly colluding to reduce discounts for consumers buying Apple and Beats products on Amazon Italy. Amazon has been fined 68.7 million euros (around $77 million), while Apple will have to pay 134.5 million euros (around $151 million). According to Reuters, the regulators objected to a 2018 agreement between the two companies that enabled only select retailers to sell Apple and Beats products on Amazon Italy. They said this violated EU antitrust regulations as it prevented competition that would have otherwise benefited consumers. The ruling also instructed the two companies to end their restrictive agreement and allow all interested retailers to sell Apple and Beats products on Amazon.it.

Both Companies Have Denied Wrongdoing

Amazon Apple

Following the judgment, both Apple and Amazon released separate statements, denying any wrongdoing. Describing the ruling as "disproportionate and unjustified." Amazon said that it does not benefit in any way by excluding any seller from its online marketplace. However, it also defended the deal with Apple, saying that it allows customers to "find the latest Apple and Beats products ... with better deals and faster shipping." On its part, Apple claimed that the deal helps ensure that only genuine Apple products are sold on Amazon.it.

Meanwhile, the ruling also noted that the national antitrust regulators in Spain and Germany have also opened their own antitrust investigations into Apple and Amazon's restrictive agreements in those countries. Spain opened its investigations earlier this year and said that it might take up to 18 months to be completed. At the same time, German authorities are probing how they could enact regulation to prevent Amazon and Apple from exploiting legal loopholes to abuse their leadership positions in the market.

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Source:  AGCM (Italian), Reuters