Large companies suffer from penalties. Find out why.
In recent days, a major controversy has occurred involving two big names in global technology. Two billion-dollar companies have been penalized by law for allegedly violating fair competition rules in the market.
The organizations in question are the famous Apple, a giant in electronic devices, and Amazon, the huge e-commerce and technology company. To better understand this story, continue reading.
Million dollar fine
Amazon and Apple have been fined US$1.4 billion (around R$1 billion) for “restricting competition” on Amazon’s website in Spain. The information was released this Tuesday (18) by the National Market and Competition Commission (CNMC).
According to CMNC, the October 2018 contract that gives Amazon the right to resell Apple products contains an anti-competition clause that favors iPhone owners to the detriment of competitors and makes it difficult for resellers to access the platform. The document states that branded products can only be sold on the market by a number of distributors selected by Apple itself.
Additionally, the contract's other advertising terms restrict the ability of Apple's competitors to run campaigns on Amazon's site, the organization said.
According to information from CMNC, the action also affected e-commerce in Spain, in addition to making it difficult for merchants not authorized by the owner of the iPhone to access the largest online commerce platform in Spain.
The total fines imposed were US$161.4 million (R$775.2 million) for Apple and US$56.7 million (R$272.3 million) for Amazon. Both companies denied the charges and said they would appeal the decision.
Companies will appeal
Amazon denied in a statement through a spokesperson that the company benefits from removing sellers from its marketplace. The organization said Amazon's business model depends on the success of companies that sell through the platform and emphasized that Apple customers benefit from the partnership with deeper discounts on iPads and iPhones.
In response, Apple said its deal with Amazon was aimed at limiting the sale of counterfeit products. The company said big tech companies have invested significant money and effort in sending out advertising opt-out notices to prevent the sale of counterfeit devices.
Despite the negatives, this It's not the first time that both companies are subject to similar measures. This speaks against large organizations in court. In October last year, Reuters reported on a lawsuit in Italy also involving Amazon and Apple. Both were fined US$1.4 billion (R$1.07 billion).
The CMNC’s decision in Spain highlights growing regulatory concerns about anti-competitive behavior by major players in the technology sector. The fines imposed on companies are a sign of the need to ensure a fair and open market environment that encourages competition and free consumer choice.
As the two companies did not accept the penalties applied well, all that remains is to wait and follow the developments of this legal battle.
