Amazon Fined €10.7 Mln By Italian Competition Watchdog For Unfair Trade Practices

(RTTNews) - The Italian Competition Authority (AGCM) has imposed fines totaling 10.7 million euros on two Amazon group companies, Amazon Services Europe and Amazon EU, for alleged unfair commercial practices.

The investigation centers around Amazon's 'Subscribe and Save' option, which allows customers to establish recurring deliveries of frequently purchased items.

According to the complaint, Amazon is automatically selecting the recurring purchase option for a broad range of products listed on its Italian platform.

Amazon's Subscribe and Save program offers several benefits, including free shipping, discounted packaging, and the convenience of scheduled deliveries for eligible products. Customers can easily subscribe to receive regular deliveries of the products they frequently use, with discounts ranging from 5% to 15% based on the number of subscriptions.

The Italian watchdog argues that this practice "substantially limits consumer choice," as consumers are more likely to opt for recurring deliveries rather than one-time purchases.

"The automatic selection of recurring purchases encourages individuals to buy a product periodically—even when not strictly necessary—thus impeding their freedom of choice," stated the antitrust body.

In response, Amazon Italy defended its 'Subscribe and Save' feature, stating that it is "intended to assist customers in saving time and money on recurring deliveries."

The company pointed out that since its introduction in Italy, "Amazon customers have collectively saved over €40 million through Subscribe and Save orders."