Italy's antitrust authority has fined Apple and Amazon over $227 million for colluding to violate the country's competition rules. In its announcement on November 23, the Italian Competition Authority said that it had found that certain clauses in the two companies' contract, signed in October 2018, violated antitrust laws by restricting sales of Apple-owned Beats products to certain sellers, limiting cross-border sales, etc. Out of the $227 million fine, Apple will be liable to pay $77 million while Amazon will have to cover the rest ($150 million). The ICA's decision finds relevance closer home where the Competition Commission of India (CCI) is investigating Amazon over allegations of preferential treatment to certain large sellers. India's e-commerce rules (both the new draft and the older rules) prohibit e-commerce platforms from giving special treatment to any retailer. Key points raised in the ICA's sanction In a press release, the ICA noted the following points: Violation of laws: The companies' 2018 agreement violated Article 101 of the Treaty on the Functioning of the European Union (TFEU), the ICA held. The article deals with anti-competitive practices in Italy. Profiting off discounts: Through their agreement, Amazon and Apple decreased the amount of discounts offered by third-party sellers on its site, the ICA said. In its investigation, it found that the agreement had certain clauses which prohibited official and unofficial resellers from using Amazon Italy to sell Apple and Beats products; instead, restricting it to certain sellers chosen by Amazon. Amazon's dominance in Italy: At least 70% of electronics purchases…
