Italy fines Apple, Amazon $230 million over price fixing

Posted:
in General Discussion
A fine totalling 203.2 million Euros has been imposed on Apple and Amazon by Italian regulators, following an antitrust investigation about retail collusion and price fixing.

Apple Store Piazza in Milan
Apple Store Piazza in Milan


Italy's antitrust regulator L'Autorit Garante della Concorrenza e del Mercato (AGCM) had been investigating the two companies following allegations that they worked together to prevent price cuts from other vendors. Now the AGCM has ruled that the two cooperated in anti-competitive moves over the sale of Apple and Beats devices.

According to Reuters, the authority has imposed a fine of 134.5 million Euros on Apple ($151.6 million), and 68.7 million Euros ($77.43) on Amazon. The two companies are also ordered to end the alleged practices.

Apple and Amazon have separately issued statements denying the accusations, and saying they will appeal the ruling.

"To ensure our customers purchase genuine products," said Apple, "we work closely with our reseller partners and have dedicated teams of experts around the world who work with law enforcement, customs and merchants to ensure only genuine Apple products are being sold."

"We reject the suggestion that Amazon benefits by excluding sellers from our store, since our business model relies on their success," said Amazon. "As a result of the agreement, Italian customers can find the latest Apple and Beats products on our store, benefiting from a catalogue that more than doubled, with better deals and faster shipping."

Italy's AGCM has previously fined Apple much smaller amounts over claimed planned obsolescence, and battery slow downs.

Read on AppleInsider

Comments

  • Reply 1 of 11
    fred1fred1 Posts: 851member
    And cue the eurobashing . . .
    Hedwaredarkvaderwilliamlondon
  • Reply 2 of 11
    lkrupplkrupp Posts: 9,637member
    fred1 said:
    And cue the eurobashing . . .
    No ‘eurobashing’ just government bashing in general. Just because some bureaucrats come up with allegations does not mean something illegal actually happened. Unless, of course, one is in the “ all corporations are evil” camp. Then there is an assumption of guilt. Bureaucrats are notorious for their actions to keep themselves employed. Both Apple and Amazon are appealing the fines. Let’s wait a little while longer before condemning the companies.
    Sylasdewmemagman1979viclauyycEsquireCatswatto_cobra
  • Reply 3 of 11
    lkrupp said:
    fred1 said:
    And cue the eurobashing . . .
    No ‘eurobashing’ just government bashing in general. Just because some bureaucrats come up with allegations does not mean something illegal actually happened. Unless, of course, one is in the “ all corporations are evil” camp. Then there is an assumption of guilt. Bureaucrats are notorious for their actions to keep themselves employed. Both Apple and Amazon are appealing the fines. Let’s wait a little while longer before condemning the companies.
    There's an assumption of guilt because THEY HAVE ALREADY BEEN CONVICTED.  Something illegal happened.  Apple and Amazon are guilty, have been convicted, and have been fined.  Sure, they have appeals left, but we all know Apple is notorious for engaging in anti-competitive behavior these days.
    xyzzy-xxxwilliamlondonelijahg
  • Reply 4 of 11
    avon b7avon b7 Posts: 5,959member
    lkrupp said:
    fred1 said:
    And cue the eurobashing . . .
    No ‘eurobashing’ just government bashing in general. Just because some bureaucrats come up with allegations does not mean something illegal actually happened. Unless, of course, one is in the “ all corporations are evil” camp. Then there is an assumption of guilt. Bureaucrats are notorious for their actions to keep themselves employed. Both Apple and Amazon are appealing the fines. Let’s wait a little while longer before condemning the companies.
    Click through on the link provided in the article. The Italian department claimed Apple and Amazon had a contract that violated EU law on the matter. 

    On the face of it, it was an open and shut case. Both parties can appeal but if they violated EU law, what will come of it? 

    Of course, damage limitation starts now and that's why the obligatory 'this is unjust', we did nothing wrong', 'we disagree', 'we only want to protect consumers' is getting thrown around.

    The Italians obviously think the agreement was in violation of EU law and it's crystal clear that Apple wanted to control over who sold its products through a third party retailer, and as the Italians have claimed, that is discriminatory. 
    muthuk_vanalingamxyzzy-xxxelijahg
  • Reply 5 of 11
    darkvader said:
    lkrupp said:
    fred1 said:
    And cue the eurobashing . . .
    No ‘eurobashing’ just government bashing in general. Just because some bureaucrats come up with allegations does not mean something illegal actually happened. Unless, of course, one is in the “ all corporations are evil” camp. Then there is an assumption of guilt. Bureaucrats are notorious for their actions to keep themselves employed. Both Apple and Amazon are appealing the fines. Let’s wait a little while longer before condemning the companies.
    There's an assumption of guilt because THEY HAVE ALREADY BEEN CONVICTED.  Something illegal happened.  Apple and Amazon are guilty, have been convicted, and have been fined.  Sure, they have appeals left, but we all know Apple is notorious for engaging in anti-competitive behavior these days.
    The problem is that, particularly after the Amanda Knox case, Italy's thoroughly corrupt "justice system" is entirely lacking in credibility. Yes, she was exonerated, eventually, after 4 years, on appeal, but it's absurd that she was ever convicted in the first place. So, "THEY HAVE ALREADY BEEN CONVICTED" isn't really a strong argument when we are talking about Italy.
    lkruppmaximaraFidonet127EsquireCatswatto_cobra
  • Reply 6 of 11
    Apple gets to set prices on what they sell through Amazon. Everyone does. 

    That’s normal business. 

    And even if Apple had some agreement with Amazon with a “don’t sell below this much” clause, that’s not price fixing. That’s a simple sales agreement. 

    Price fixing can’t really happen with a resell agreement unless you go and get everybody in on it. 

    Ridiculous. 

    Also, no trial? 

    The “investigator” just says so? 

    Hope I’m missing something. 
    williamlondonmaximarawatto_cobra
  • Reply 7 of 11
    darkvader said:
    lkrupp said:
    fred1 said:
    And cue the eurobashing . . .
    No ‘eurobashing’ just government bashing in general. Just because some bureaucrats come up with allegations does not mean something illegal actually happened. Unless, of course, one is in the “ all corporations are evil” camp. Then there is an assumption of guilt. Bureaucrats are notorious for their actions to keep themselves employed. Both Apple and Amazon are appealing the fines. Let’s wait a little while longer before condemning the companies.
    ...but we all know Apple is notorious for engaging in anti-competitive behavior these days.
    No, but people like you claim their opinions as facts all the time, doesn't make it so.
    EsquireCatswatto_cobra
  • Reply 8 of 11
    elijahgelijahg Posts: 2,506member
    avon b7 said:
    lkrupp said:
    fred1 said:
    And cue the eurobashing . . .
    No ‘eurobashing’ just government bashing in general. Just because some bureaucrats come up with allegations does not mean something illegal actually happened. Unless, of course, one is in the “ all corporations are evil” camp. Then there is an assumption of guilt. Bureaucrats are notorious for their actions to keep themselves employed. Both Apple and Amazon are appealing the fines. Let’s wait a little while longer before condemning the companies.
    Click through on the link provided in the article. The Italian department claimed Apple and Amazon had a contract that violated EU law on the matter. 

    On the face of it, it was an open and shut case. Both parties can appeal but if they violated EU law, what will come of it? 

    Of course, damage limitation starts now and that's why the obligatory 'this is unjust', we did nothing wrong', 'we disagree', 'we only want to protect consumers' is getting thrown around.

    The Italians obviously think the agreement was in violation of EU law and it's crystal clear that Apple wanted to control over who sold its products through a third party retailer, and as the Italians have claimed, that is discriminatory. 
    Excessive control? Apple? No way.
    avon b7
  • Reply 9 of 11
    elijahgelijahg Posts: 2,506member
    darkvader said:
    lkrupp said:
    fred1 said:
    And cue the eurobashing . . .
    No ‘eurobashing’ just government bashing in general. Just because some bureaucrats come up with allegations does not mean something illegal actually happened. Unless, of course, one is in the “ all corporations are evil” camp. Then there is an assumption of guilt. Bureaucrats are notorious for their actions to keep themselves employed. Both Apple and Amazon are appealing the fines. Let’s wait a little while longer before condemning the companies.
    ...but we all know Apple is notorious for engaging in anti-competitive behavior these days.
    No, but people like you claim their opinions as facts all the time, doesn't make it so.
    People like and including you think Apple can never do any wrong, ever. Everything they do is always in the best interests of the customer, apparently. If Apple was telling Amazon to forbid sellers on their platform from selling Apple products, then that's illegal under competition law. And apparently, that is exactly what Apple was doing.
    muthuk_vanalingamavon b7
  • Reply 10 of 11
    elijahg said:
    darkvader said:
    lkrupp said:
    fred1 said:
    And cue the eurobashing . . .
    No ‘eurobashing’ just government bashing in general. Just because some bureaucrats come up with allegations does not mean something illegal actually happened. Unless, of course, one is in the “ all corporations are evil” camp. Then there is an assumption of guilt. Bureaucrats are notorious for their actions to keep themselves employed. Both Apple and Amazon are appealing the fines. Let’s wait a little while longer before condemning the companies.
    ...but we all know Apple is notorious for engaging in anti-competitive behavior these days.
    No, but people like you claim their opinions as facts all the time, doesn't make it so.
    People like and including you think Apple can never do any wrong, ever.
    It's not a question of Apple never doing any wrong but a government known to be corrupt going kangaroo court on Apple...just like they did with Amanda Knox.  Only difference is Apple has the resources to fight back and no one is going to jail for a crime they didn't commit.
    edited November 24 williamlondonwatto_cobra
  • Reply 11 of 11
    crowleycrowley Posts: 9,124member
    What's this "corruption" being mentioned?  My understanding of the Amanda Knox case is that the Italian police were convinced that Knox and her boyfriend were involved, and inappropriately questioned them extensively without a lawyer our adequate translation.  That's dodgy police work, but it's not corruption, there's no suggestion that money changed hands?

    Mistakes are made in every justice system.  Claiming Italy's is corrupt because of one case just because it involved an American woman strikes me as a touch reactive.
    muthuk_vanalingamelijahg
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