Italian antitrust authority AGCM has slapped a hefty 10 million euro fine on ecommerce giant Amazon for unfair trade practices. The fine targets two of Amazon’s subsidiaries: Amazon Services Europe and Amazon EU.
This is not the first time Amazon has come under scrutiny in Europe. In Germany, the FCO investigated Amazon’s activities, resulting in a 746 million euro fine by the European Union in 2021.
In the same year, AGCM also imposed a record 1.13 billion euro fine on Amazon for abusing its market dominance through Fulfilment by Amazon, disadvantaging competitors in the process.
Controversy over ‘recurring purchase’ pre-set
The recent fine relates to the automatic pre-selection of ‘recurring purchase’ for a variety of products on Amazon Italy’s website. AGCM found this practice to limit consumer choice for both Amazon’s own products and those of third-party sellers.
The pre-ticking of the recurring purchase icon limits a customer’s choice.
“The pre-ticking of the recurring purchase icon encourages unnecessary purchases, restricting consumer choice,” the authority said. “Amazon’s actions were contrary to professional diligence standards, as a company of its stature should provide interfaces that allow consumers to make informed purchasing decisions.”
Amazon to challenge the fine
Amazon has announced plans to appeal the fine, emphasizing the benefits of its Subscribe and Save program for customers. “Our priority has always been to earn and maintain customer trust, providing a great shopping experience with low prices, great selection, and fast delivery,” the company stated.
