A Amazon And apple were fined US$218 million (about R$1 billion) for “restrict competitionfrom Big Tech on the Amazon website in Spain. The information was released on Tuesday (18) by the National Market and Competition Commission (CMNC), which is responsible for regulating activities in the country.

According to CMNC, the contract that gave Amazon the right to resell Apple products, signed in October 2018, included anti-competitive clauses that benefited the iPhone owner over competitors and made it harder for resellers to access the platform. The document stipulated that only a number of distributors appointed by Apple itself could sell branded products on the market.

In addition, other promotional clauses in the contract limited the ability of Apple’s competitors to run campaigns on Amazon’s website, the organization said. Also, according to CMNC, the measure impacted e-commerce in the country and made it difficult for non-Apple-authorized merchants to access Spain’s largest online sales platform.

The total amount of the fine imposed was 161.4 million US dollars (775.2 million reais) for Apple and 56.7 million US dollars (272.3 million reais) for Amazon. Both companies denied the allegations and said they would appeal the decision.

Amazon and Apple deny and will appeal

An Amazon spokesperson issued a statement dismissing the suggestion that it is beneficial for the company to exclude sellers from its market. She said Amazon’s business model depends on the success of companies that sell through the platform, and stressed that Apple’s consumers have benefited from the agreement as discounts on iPads and iPhones have increased.

For its part, Apple said that the agreement with Amazon is aimed at limiting the sale of counterfeit products. According to the company, big tech companies spent a lot of money and effort sending ad takedown notices to stop the sale of counterfeit devices.

This is not the first time that two companies have been the target of such actions. Last October, Reuters reported on a case in Italy involving Amazon and Apple that also resulted in a $224.8 million (R$1.07 billion) fine.

Spain’s CMNC decision highlights the growing concerns of regulators about the anti-competitive practices of tech giants. The fine imposed on companies serves as a warning about the need to ensure a fair and open market environment, stimulate competition and free choice of consumers.

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Source: Reuters.

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