The Antitrust authority has imposed a fine of 10 million euros jointly on two companies within the Amazon group (the Luxembourg companies Amazon Services Europe and Amazon EU) for engaging in unfair commercial practices. This practice involved pre-selecting the option for periodic purchases for a wide range of products offered on the website https://www.amazon.it. The option for recurring purchases was set as the default on the webpage describing the selected item, whether the products were sold by Amazon or third-party sellers on the marketplace. This imposition limited consumer choice significantly, as the default selection of recurring purchases encouraged consumers to buy a product regularly, even without a real need, thus restricting their freedom of choice. The Antitrust authority found this behavior to be in violation of professional diligence standards, as a company as prominent as Amazon should create online interfaces for purchasing processes that allow consumers to make informed and free choices.
At the beginning of the investigation, Amazon was also accused of pre-selecting the option for expedited paid delivery. However, the Authority has accepted the commitments proposed by Amazon, which include only predefining the option for free delivery in the future. Additionally, the two companies will provide compensation to consumers who complained to Customer Service about this behavior during 2023. This resolution aims to ensure that consumers are not misled or compelled to make purchases that they did not intend to make due to pre-selected options. By rectifying these practices, Amazon aims to enhance consumer choice and transparency in its online marketplace operations, demonstrating its commitment to complying with competition and consumer protection regulations.
The Antitrust authority’s decision to fine Amazon’s companies for their unfair commercial practices highlights the importance of protecting consumer rights and ensuring fair competition in the e-commerce sector. By preselecting the option for periodic purchases on its website, Amazon limited consumers’ freedom of choice and potentially induced them to buy products regularly, even if they did not actually need them. This misleading practice was considered a breach of professional diligence standards expected from a major player like Amazon. The Authority’s intervention and the subsequent commitments made by Amazon are aimed at rectifying these issues and improving transparency and consumer choice in online shopping experiences.
The sanction imposed on Amazon’s companies for unfair commercial practices underscores the need for companies to adhere to ethical and legal standards in their business operations, especially in the online marketplace. By setting the default option for recurring purchases, Amazon restricted consumer choice and potentially influenced purchasing decisions, infringing on consumer rights and fair competition principles. As a result, the Antitrust authority intervened to ensure that such practices are rectified, compensating consumers affected by these practices and setting a precedent for transparent and consumer-centric business practices in the e-commerce industry. This case serves as a reminder to companies that consumer trust and compliance with regulatory standards are essential for sustainable business growth and reputation management in the digital age.
The Antitrust authority’s decision to fine Amazon’s companies for unfair commercial practices is a clear signal that companies operating in the e-commerce sector must prioritize consumer rights and fair competition. By pre-selecting the option for periodic purchases, Amazon limited consumer choice and potentially manipulated purchasing decisions, leading to a violation of professional diligence standards. The Authority’s intervention, acceptance of commitments by Amazon, and provision of compensation to affected consumers demonstrate the importance of upholding transparency, consumer choice, and fair competition in online marketplace operations. This case serves as a cautionary tale for companies engaging in similar practices and underscores the significance of ethical business conduct and regulatory compliance in the digital marketplace.
