MADRID, Feb 25 (Reuters) – Apple and Amazon took too long to take out anti-competitive clauses outlining Amazon’s conditions as an Apple distributor that the companies had been told to remove immediately, Spain’s competition regulator ruled on Wednesday. The CNMC regulator fined the two companies 194 million euros ($228 million) in total in July 2023 […]
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Apple and Amazon took too long to remove anti-competitive clauses, Spanish watchdog says
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MADRID, Feb 25 (Reuters) – Apple and Amazon took too long to take out anti-competitive clauses outlining Amazon’s conditions as an Apple distributor that the companies had been told to remove immediately, Spain’s competition regulator ruled on Wednesday.
The CNMC regulator fined the two companies 194 million euros ($228 million) in total in July 2023 over those clauses and ordered their immediate removal from distribution contracts. It said they unfairly restricted the number of Apple resellers on Amazon’s website in Spain. The latest finding of infringement could mean a further fine.
The regulator had also alleged at the time that the clauses limited the amount of space on Amazon’s Spanish website where Apple competitors’ products could be advertised and prevented Amazon from running marketing campaigns offering Apple customers competing products from other brands.
APPLE AND AMAZON DISAGREE WITH THE DECISION
In an emailed statement to Reuters, Apple said it respected the CNMC but disagreed with its decision, adding it had always complied with authorities’ orders.
“We will continue to work to protect our customers from counterfeit products and offer them the assurance that they are receiving a genuine Apple product when they take it out of the box,” the company added.
Amazon also disagreed and said it would lodge an appeal.
“We also disagree with the CNMC’s assertion that Amazon benefits from excluding sellers from the store, as our business model is based precisely on the success of the companies that sell through Amazon, many of which are small and medium-sized enterprises,” said a spokesperson for the Seattle-based tech giant.
Last October, the watchdog proposed opening an investigation into the companies’ failure to take action under the cease-and-desist order until May 2025, which is when they removed the clauses.
At the time, the regulator said there were indications of an infringement as a result of non-compliance.
The companies appealed the CNMC’s 2023 decision before the country’s High Court and the original fine has been suspended pending judgment.
($1 = 0.8493 euros)
(Reporting by David Latona; Editing by Charlie Devereux, Emelia Sithole-Matarise and Barbara Lewis)