Italian Court Slashes Amazon's Landmark Antitrust Fine by Nearly Half

In a significant legal development that reverberated across the e-commerce landscape, Italy's highest administrative court has dramatically reduced a substantial antitrust fine initially levied against Amazon. The Council of State has cut the penalty from a staggering 1.13 billion euros ($1.22 billion) down to 583 million euros ($630 million), marking a pivotal moment in Amazon's ongoing legal challenges within Europe and offering the tech giant a considerable financial reprieve.

The original fine, imposed by the Italian antitrust watchdog (Autorità Garante della Concorrenza e del Mercato, or AGCM/ICA) in December 2021, accused Amazon of a grave abuse of its dominant position within the e-commerce logistics market.

The regulator alleged that Amazon unfairly penalized third-party sellers who opted not to utilize its proprietary logistics service, "Fulfilment by Amazon" (FBA). This practice, the watchdog contended, created an anticompetitive environment, effectively steering sellers towards Amazon's own services and stifling competition, ultimately impacting consumer choice.

Initially, a regional administrative court (Tribunale Amministrativo Regionale, or TAR) had upheld the ICA's original decision in July 2023, affirming the full weight of the massive fine.

Undeterred, Amazon escalated the battle, appealing this ruling to the Council of State, Italy's supreme administrative court, in a bid to either completely overturn the penalty or secure a substantial reduction.

The Council of State, in its closely watched decision, determined that the ICA's initial assessment of both the duration and the gravity of the infringement was overly broad or based on incorrect calculations.

While not entirely absolving Amazon of wrongdoing, the court concluded that specific aspects of the antitrust watchdog's methodology, particularly concerning how the relevant market was defined and the precise scope of the alleged abuse, necessitated a recalculation. Crucially, the court revised the "duration of the infringement" with a lower coefficient, a key factor that directly led to the fine being nearly halved.

Amazon was quick to welcome the court's decision, viewing it as a vindication of its operational integrity.

A company spokesperson released a statement, saying, "We welcome the decision of the Council of State. We remain committed to our customers and to the small and medium-sized businesses that sell on our store in Italy." The Italian antitrust regulator has yet to issue an official public comment on the revised penalty, leaving the details of their next steps open.

This significant ruling unfolds at a critical juncture, as major tech companies—including giants like Amazon, Google, Apple, and Meta—continue to face intensified scrutiny from regulatory bodies across the globe, particularly within Europe.

Allegations of monopolistic practices and the wielding of market dominance are at the forefront of these investigations. While still a very substantial sum, the reduction of this fine offers Amazon not just financial relief but also potentially establishes an important precedent for how antitrust fines against major tech players are calculated, challenged, and ultimately decided in European courts, signaling a complex and evolving legal landscape for global commerce.