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Penalties for fixing Apple and Amazon prices imposed by the antitrust regulator


An Italian investigation into the alleged fixing of the prices of Apple and Amazon in the sale of both Apple and Beats products has found the companies guilty. Each of them was punished by the antitrust regulator.

The two companies were also ordered to terminate their restrictive agreement to sell Beats products on Amazon…

Background

In 2018, Apple and Amazon reached an agreement with several countries that limited the sale of Apple and Beats products on Amazon. Only ads by Apple authorized resellers were allowed, and only large companies could meet strict quantity requirements. The agreement was originally applied in the US, UK, France, Germany, Italy, Spain, Japan and India.

Independent resellers have objected that this would throw them out of business, as Apple has only authorized companies that sell shares worth millions of dollars. Antitrust investigations have been opened in a number of countries, including Germany, Italy and Spain.

Technology giants and e-commerce giants claimed the deal was designed to address the problem of counterfeit Apple products, especially things like chargers, which were often dangerous. Apple said that earlier almost 90% of the “real” chargers sold through Amazon were fake.

Two companies were originally established a brand registration program,, before moving on and creating an authorized reseller store.

Apple and Amazon penalties for fixing prices

Reuters reports that Italian authorities have now concluded their investigation and found Apple and Amazon guilty of price fixing, restricting competition in sales of both Apple and Beats products.

The Italian antitrust administration has fined US technology giants Amazon and Apple a total of more than 200 million euros ($ 225 million) for alleged anti-competitive cooperation in the sale of Apple and Beats products.

The contractual provisions of the 2018 agreement between the companies meant that only selected resellers were allowed to sell Apple and Beats products on Amazon.it, the supervisor said, adding that it was a violation of EU rules and affected price competition. […]

Authorities imposed a fine of 68.7 million euros for Amazon and 134.5 million euros for Apple, ordering companies to lift restrictions to give sellers of genuine Apple and Beats products access to Amazon.it in a non-discriminatory manner.

Both companies objected, saying they plan to file an appeal.

Apple: “To ensure that our customers buy genuine products, we work closely with our reseller partners and have dedicated teams of experts around the world working with law enforcement, customs and retailers to ensure that only genuine Apple products are sold.”

Amazon: “We reject the suggestion that Amazon benefits from excluding resellers from our store because our business model relies on their success. As a result of the agreement, Italian customers can find the latest Apple and Beats products in our store, using more than double the catalog, with better deals and faster delivery. ”

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Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

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