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Amazon was fined $1.3 billion in Italy for violating antitrust laws



A Reuters report stated that Amazon achieved this through aggressive promotion of the company's Fulfillment By Amazon (FBA) service, which provides sellers with a slew of beneficial features and services. A few examples include (but are not limited to) Amazon's storage, packing, and shipping services, in addition to the customer service provided by the company. Even more importantly, FBA enables sellers to include the highly sought-after "Prime" label on their listings. This, according to Italy, has a significant impact on the visibility of their listings and, therefore, the number of sales.


This means that sellers who wish to make use of Amazon's platform are strongly encouraged to do so through FBA (Fulfillment by Amazon). The convenience of FBA allows Amazon to deduct a premium from an item's sale price in exchange for the convenience of the service, which obviously increases the overall revenue of the platform significantly.


It's likely that many of our readers can attest to the effectiveness of Prime labeling. The number of non-Prime items that my family and friends have purchased in the last year is probably less than two on a single hand. A large number of consumers find the convenience of faster shipping to be simply too tempting to pass up.


As a result, the Italian government believes that Amazon's decision to prohibit non-FBA third-party sellers from using the Prime label violates antitrust laws and has imposed a $1.3 billion fine on the retail giant. The decision has obviously not been acceptable to Amazon, who has already filed an appeal against the ruling in this case.


The efficiency, convenience, and competitive pricing offered by FBA are reasons why sellers choose Amazon, according to reports. "The proposed fines and remedies are disproportionate and unjustified," says the attorney general. Amazon says that FBA is not required to sell on the platform; in fact, the vast majority of third-party sellers do not use it at all, according to the company. It is another question whether or not those sellers achieve the same level of success as those who do.

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