Amazon and Apple, two of the biggest names in the tech industry, have been slapped with hefty fines by Spain’s antitrust regulator. The fines, amounting to a total of €194.1 million ($218 million), were imposed due to allegations of colluding to stifle competition on the Amazon website in Spain. The regulatory body, known as CNMC, stated that the companies had signed contracts in 2018 that included anti-competitive clauses, ultimately impacting the online market for electronic devices in Spain.
Apple was fined €143.6 million ($161.4 million), while Amazon received a penalty of €50.5 million ($56.7 million). Both companies have a two-month window to appeal the decision, and their respective spokespersons have indicated their intentions to do so.
According to CNMC, the contracts between Amazon and Apple led to unjustified restrictions on the number of sellers of Apple products on the Amazon website in Spain. Consequently, more than 90% of the retailers using Amazon’s marketplace to sell Apple devices were blocked. Additionally, Amazon limited the advertising opportunities for Apple’s competitors when users searched for Apple products on their platform. These practices ultimately resulted in increased prices for Apple devices sold online in Spain, the regulator added.
Amazon defended its actions, rejecting CNMC’s suggestion that it benefited from excluding sellers from its marketplace. The company argued that its business model relied on the success of companies selling through Amazon. Furthermore, Amazon’s spokesperson asserted that the deal between the two tech giants had actually benefited Apple device buyers, citing an increase in the number of discounts on iPads and iPhones.
Apple, on the other hand, claimed that the agreement with Amazon aimed to combat the sale of counterfeits online. The company stated that it had previously expended significant resources in sending “take-down” notices to halt the sale of counterfeit devices. The collaboration with Amazon was purportedly an effort to streamline this process.
Interestingly, this is not the first time Amazon and Apple have faced similar allegations. In October, Reuters reported on a case in Italy that bore similarities to the one in Spain. Initially, the two companies were threatened with €200 million ($224.8 million) in fines before the case was eventually dropped.
While the fines imposed by Spain’s antitrust watchdog are significant, the appeals process will determine the final outcome. It remains to be seen how this case will unfold and whether the penalties will be upheld or modified.
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