Experts Speculate Whether a Hefty Antitrust Fine Against Amazon in Italy Will Reach the US

In another case of antitrust movement against Big Tech, Amazon was fined approximately $1.3 billion on Thursday by Italy's competition regulator, the Autorità Garante della Concorrenza e del Mercato (AGCM). The firm is accused of breaking antitrust laws by favoring its third-party sellers that use Amazon’s delivery and logistics services. After Congress began updating the nation's antitrust laws in June with a package of five bills to reign in Big Tech's anticompetitive practices, eyes are on the case to catch any ripples that might reach the U.S. The regulator said via a statement that by leveraging its logistical service, Fulfillment by Amazon (FBA), the company entices its merchants, which account for nearly 60% of sales, with access to Amazon Prime customers. This increases the likelihood of a merchant’s offer to be selected as the Featured Offer displayed in Amazon's buy box, something shoppers use to buy a product. In addition, third-party businesses using FBA are granted relief from the stringent performance indicators that are applied to monitor non-FBA sellers’ performance. This can result in the suspension of a non-compliant merchant’s account on Amazon.it. 5 Key Takeaways After Big Tech CEOs Testify in Meandering Antitrust Hearing The Italian Competition Authority claimed that Amazon jeopardized smaller ecommerce competitors by hindering them from providing services to these online sellers. It has “widened the gap between Amazon’s market power and its competitors’ in the delivery of ecommerce parcels,” according to the statement. The amount equals over a third of Amazon's net profits in the third quarter, according to Financial Times. But while the size isn't always the issue, how this spurs other regulations in the U.S. makes it noteworthy. "Oftentimes, the outcome of a regulatory action is corrective measures or a change in practices," said Gary Kibel, digital media and privacy lawyer at Davis+Gilbert, who predicts Amazon will have to adjust some of its practices if all avenues are exhausted. This could alter the marketing industry dynamics in the U.S. as fewer monopolistic tech platforms make it easier for other third-party commerce sellers to thrive. Amazon's appeal In a statement to Adweek, Amazon said it “strongly disagrees with the decision of the Italian Competition Authority” and will appeal. “The proposed fine and remedies are unjustified and disproportionate,” an Amazon spokesperson said. This is not the first time a Big Tech company has been brought forward for a formal investigation. In a similar case in Europe, Google was levied with nearly a $3 billion shopping fine in 2017 for favoring its own shopping services while relegating competitors on its results page. However, in the case of Amazon, global regulators are leveling their focus, according to Kibel. “Regulators may be looking a little closer at the way the algorithms are structured and the data that informs their decisions,” said Kibel, who expects similar cases to arise in the future. Antitrust has become a global phenomenon, and antitrust regulators in many jurisdictions, including Congress, have previously questioned other tech platforms. Amazon itself is facing a Europe-wide probe on a similar matter. “It’s hard to determine if [Amazon] is manipulating [its] search algorithm based upon the third-party using Amazon services,” Kibel added. While he cannot ascertain whether similar practices are carried out in the U.S., the likelihood of Amazon changing its regulations depends on the degree of the appeal they make in Italy. Ad Tech Is Primed for Its Own Roaring ’20s