Spain has slapped Amazon and Apple with combined fines amounting to 194.1 million euros (roughly $218 million) in response to allegations of antitrust infringements. As Reuters reports, the charges stem from an agreement reached by the two companies in 2018 that allowed Amazon to become an approved dealer of Apple goods, but was said to have included potentially anti-competitive provisions. Spain’s competition authority, the Comisión Nacional de los Mercados y la Competencia (CNMC), announced today that “The two firms unjustifiably limited the number of sellers for Apple goods on Amazon’s Spanish website.”
The CNMC imposed penalties of 143.6 million euros on Apple and 50.5 million euros on Amazon for their implicated involvement in the purported price-rigging scheme, based on contracts inked on October 31st, 2018. The regulatory body revealed that more than 90% of existing merchants offering Apple goods on Amazon were barred from the platform following the agreement. Furthermore, it is alleged that Amazon placed limitations on non-Spanish sellers within the European Union from accessing Spanish consumers. The online retail giant is also accused of curbing permitted advertisements from Apple’s competitors when consumers search for Apple devices.
The CNMC asserts that these actions resulted in increased online prices for Apple devices listed and sold in Spain.
In separate statements to Reuters, Amazon and Apple have rejected the claim that their agreement negatively impacted consumers. An Amazon representative stated today, “We refute the CNMC’s claim that Amazon profits from excluding sellers from its marketplace, as our business model fundamentally relies on the success of companies selling through Amazon.” In a similar vein, Apple argued that the agreement was designed to combat counterfeit sales, adding that it had previously invested significantly in issuing hundreds of thousands of take-down notices for fake products.
The firms have a two-month window to challenge the decision by the antitrust watchdog. Representatives for both companies indicated to Reuters their intention to appeal.
Frequently Asked Questions (FAQs) about Spain’s antitrust fines on Amazon and Apple
What is the total fine imposed on Amazon and Apple by Spain?
Spain has imposed a total fine of 194.1 million euros (approximately $218 million) on Amazon and Apple for alleged antitrust violations.
Which companies made an agreement in 2018 that is now considered anti-competitive?
Amazon and Apple made an agreement in 2018 that is now considered potentially anti-competitive. The deal made Amazon an approved dealer of Apple products but allegedly included restrictions limiting the number of Apple product sellers on Amazon’s Spanish website.
Who is the antitrust regulator involved in this case?
The antitrust regulator involved in this case is Spain’s competition authority, the Comisión Nacional de los Mercados y la Competencia (CNMC).
How have Amazon and Apple responded to the fines and allegations?
Amazon and Apple have both denied that the 2018 deal had a negative impact on consumers. They argue that the deal was necessary to ensure the success of companies selling through Amazon and to limit counterfeit sales of Apple products. Both companies plan to appeal the CNMC’s decision.
How did the agreement between Amazon and Apple allegedly affect sellers and consumers?
According to the CNMC, more than 90% of existing merchants selling Apple products on Amazon were barred from the platform following the agreement. Additionally, Amazon allegedly restricted non-Spanish sellers within the European Union from accessing Spanish consumers, and reduced allowed advertisements from Apple’s competitors. These actions allegedly led to increased online prices for Apple devices in Spain.
More about Spain’s antitrust fines on Amazon and Apple
- Spain fines Amazon and Apple for alleged price-fixing
- Comisión Nacional de los Mercados y la Competencia (CNMC)
- Amazon Official Website
- Apple Official Website
- European Union Competition Law
5 comments
Surely, Apple wouldn’t purposely hurt their customers. this must be some sort of misunderstanding. Looking forward to hearing their side in the appeal.
I gotta say I’m a bit shocked. always thought these big companies played by the rules…
Can’t believe Apple and Amazon thought they could just rig the game without consequences. It’s about time someone stood up to them! Justice served, if u ask me…
wow, that’s a lot of money even for these giants. Bet they didnt see that one coming, did they?
I dont really get all the details, but doesn’t seem fair to restrict sellers like that. Hope they appeal and it all gets cleared up