FX.co ★ Amazon Fined €10.7 Mln By Italian Competition Watchdog For Unfair Trade Practices

The Italian Competition Authority (AGCM) has levied penalties amounting to EUR 10.7 million against two subsidiaries of the Amazon Group, namely Amazon Services Europe and Amazon EU, charging them with alleged malpractices in commerce.

This punitive measure emerged from an investigation into Amazon's 'Subscribe and Save' scheme, a method that facilitates customers in arranging repetitive dispatches of items that they frequently buy.

As per the criticism lodged against it, Amazon seems to be auto-selecting the recurring purchase feature for an extensive array of goods present on its Italian platform.

The 'Subscribe and Save' program initiated by Amazon proffers numerous advantages such as free delivery, concessional packing, and the comfort of arranged dispatches for eligible goods. Customers have the ease of subscribing to regularly obtain the products they frequently use, and they can avail discounts that range from 5% to 15%, based on the volume of subscriptions.

The Italian regulatory entity argues that this action "substantially curbs consumer choice", because customers are more prone to opt for repetitive dispatches rather than one-time acquisitions.

"The mechanical preference of recurring acquisitions prompts individuals to periodically procure a commodity even if it's not strictly necessary, thereby infringing on their freedom of choice," the competition authority added.

In its defense, Amazon Italy avowed that its 'Subscribe and Save' function is "intended to assist patrons in conserving both time and money on recurring dispatches."

The firm highlighted that post its implementation in Italy, "Amazon consumers have collectively saved more than €40 million through 'Subscribe and Save' orders."