Amazon Fined €10 Million by Italian Regulator for Misleading Consumers

The Italian antitrust authority has fined Amazon €10 million ($10.7 million) for unfair commercial practices related to its "Subscribe & Save" program on the company's Italian website. The regulator found that Amazon's preselection of the subscription option instead of a single purchase restricted consumers' freedom of choice.

According to the Italian Competition Authority (AGCM), Amazon had pre-selected the option for "recurring" or "periodic" purchases by default on a wide range of products on its Italian website. The AGCM stated that this practice may lead consumers to make purchases they do not actually need, thereby limiting their ability to choose freely.

The AGCM considered Amazon's conduct as falling short of the expected standards of professional diligence for a prominent player in the e-commerce landscape. The watchdog claimed this "pre-ticking of recurring purchase induces one to periodically buy a product - even without the effective need - thus limiting one's freedom of choice."

Why this matters: The case may set a precedent for how subscription services are marketed and chosen by consumers on online platforms. It also highlights the increasing scrutiny that tech giants like Amazon face from regulators over their business practices and treatment of consumers.

The fine was directed at two Amazon entities: Amazon Services Europe and Amazon EU, based in Luxembourg. Amazon strongly disagrees with the AGCM's decision and plans to appeal. The company claims that the Subscribe & Save program has saved Italian customers over €40 million on regular deliveries of items they routinely use since its launch in Italy.

This is not the first time the Italian authorities have taken action against Amazon. The company was previously fined €1.13 billion in 2021 for purportedly abusing its market dominance by pushing sellers to use its own logistics service.

In addition to the concerns over the Subscribe & Save option, the AGCM also scrutinized Amazon's automatic selection of the faster and more expensive delivery option. However, the regulator said it proposed no further action after Amazon agreed to pre-select only the free delivery option going forward and to compensate consumers who complained about these practices in 2023.

An Amazon spokesperson contested the AGCM's claims, stating: "We strongly disagree with the decision of the Italian Competition Authority (AGCM) and we will appeal. The 'Subscribe & Save' program allows customers to save money and time on regular deliveries of items they routinely use, with customers saving over €40 million since it launched in Italy."

Key Takeaways

• Italy fines Amazon €10M for unfair practices in "Subscribe & Save" program
• AGCM found Amazon pre-selected subscription option, limiting consumer choice
• Case may set precedent for how subscription services are marketed online
• Amazon disagrees with decision, claims program saved customers €40M
• Italy previously fined Amazon €1.13B for abusing market dominance