Regulators Penalize Apple and Amazon with $218 Million Fine Over Small Retailer Suppression
Spain’s antitrust agency, Comision Nacional De Los Mercados Y La Competencia (CNMC), has fined Apple and Amazon a combined total of $218 million for allegedly colluding to limit competition in the online retail market for electronic products. The investigation, which started in July 2021, focused on the consolidation of third-party iPhone, Mac, and iPad resellers on Amazon.
CNMC specifically sought evidence of any agreements that restricted the sale of Apple products exclusively to Amazon. After a two-year investigation, they found evidence to support their claim and imposed fines of 194.1 million euros on both Apple and Amazon.
In response to the fine, Amazon rejected CNMC’s suggestion that excluding sellers benefits their marketplace, stating that their business model relies on the success of companies selling through them. Both Apple and Amazon argue that the consolidation benefits consumers, protects against counterfeit products, and increases the availability of discounts.
Out of the total fine, Apple was fined 143.6 million euros, while Amazon was fined 50.5 million euros. Both companies have announced their intention to appeal the decision within the two-month timeframe provided.
The agreement between Apple and Amazon to sell Apple products directly on the platform was implemented globally starting in November 2018, covering various countries, including the United States, United Kingdom, France, Germany, India, Italy, Japan, and Spain.
Prior to this agreement, Apple products were either unavailable or only sold through third-party marketplaces on Amazon, resulting in different price points and product conditions for customers.
In the United States, the Apple-Amazon agreement requires resellers to be authorized by Apple or purchase at least $2.5 million worth of refurbished inventory every 90 days. The inventory must come directly from Apple or through a third party with over $5 billion in annual sales, typically carriers and national retailers. It is unclear if the terms in Spain are the same.
As a result of the agreement, many third-party Apple resellers in the United States have closed, with the trend accelerating in recent years. The expansion of Apple’s retail stores and the Amazon deal have contributed to the decline of these resellers.
