Spain's Antitrust Watchdog slaps $218 mn fine on Apple and Amazon

On Tuesday, Spain's antitrust watchdog announced that it has fined Apple and Amazon a total of 194.1 million euros (approximately $218.03 million) for imposing restrictions on the online sale of devices from Apple and its competitors in Spain.

According to the National Commission of Markets and Competition (CNMC), the two companies signed two contracts on October 31, 2018, which granted Amazon the status of an authorized dealer for Apple products. However, these contracts contained anti-competitive clauses that negatively impacted the online market for electronic devices in Spain. As a result, Apple was fined 143.6 million euros, and Amazon was fined 50.5 million euros. Both companies have two months to appeal against the decision. Spokespersons from Apple and Amazon have stated their intentions to appeal the fines.

The CNMC stated that the contracts restricted the number of sellers offering Apple products on Amazon's website in Spain without any justifiable reason. As a consequence, more than 90% of retailers who were previously using Amazon's marketplace to sell Apple devices were blocked from doing so. This also limited the ability of retailers based in Spain, but within the European Union, to reach Spanish customers. Additionally, competitors of Apple faced advertising restrictions on Amazon's website when users searched for Apple products, further impacting fair competition.

Following the agreement between Apple and Amazon, the prices of Apple devices sold online in Spain increased.

Amazon's spokesperson denied the CNMC's suggestion that excluding sellers from its marketplace benefited Amazon. The spokesperson explained that Amazon's business model relies on the success of companies selling through its marketplace. Furthermore, according to the spokesperson, buyers of Apple devices have benefited from the deal, with an increase in discounts on iPhones and iPads.

Apple defended the deal with Amazon, stating that its objective was to reduce the sale of counterfeit products online. Prior to the agreement, the company had to invest significant time and resources in sending numerous takedown notices to prevent the sale of fraudulent devices.