Spain's antitrust regulator imposes $218 million fine on Amazon and Apple. Here's why

Spain's antitrust regulator on Tuesday imposedsubstantial fineson tech giants Amazon and Apple. The regulatory body has penalised the companies a combined total of 194.1 million euros ($218.03 million) for engaging in a collaborative effort to curtail the online sale of Apple products as well as devices offered by their competitors within Spain.

The penalty levied against Apple stands at a staggering 143.6 million euros, while Amazon faces a fine of 50.5 million euros. Both corporations have been granted a two-month window to submit an appeal, should they choose to contest the ruling.

The unveiling of Amazon and Apple's contracts

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According to the Spanish National Markets and Competition Commission (CNMC), two contracts inked by Amazon and Apple on October 31, 2018, have come under scrutiny for containing anti-competitive clauses that inflicted harm upon Spain's online market for electronic devices.The regulatory authority alleges that the agreements imposed unjustifiable restrictions on the number of Apple product sellers allowed on Amazon's Spanish website. Shockingly, more than 90 percent of the existing shops utilizing Amazon's marketplace to vend Apple products were reportedly barred as a result.

The regulatory investigation has uncovered additional findings regarding the actions of Amazon and Apple. The antitrust regulator revealed that Amazon imposed restrictions on retailers located in other European Union countries, hindering their ability to access Spanish customers.

Furthermore, Apple's competitors faced limitations on their advertising capabilities when users searched for Apple products on Amazon's website. As a consequence of this agreement between the two tech giants, the report suggests that the prices of Apple devices sold online in Spain witnessed an increase. These revelations shed further light on the alleged anti-competitive practices carried out by Amazon and Apple in Spain's online marketplace.

Amazon and Apple's counter statements

Reuters cited an Amazon spokesperson who expressed their disagreement in response to the allegations made by the Spanish National Markets and Competition Commission (CNMC). In an emailed statement to Reuters, the spokesperson stated, "We reject CNMC's suggestion that Amazon benefits from excluding sellers from its marketplace because our business model is entirely dependent on the success of the companies selling on Amazon." They emphasized that Amazon's success relies on the achievements of the sellers utilizing their platform.

The spokesperson also highlighted the positive impact of the arrangement on Apple gadget customers. They noted that the number of discounts available on iPads and iPhones actually increased as a result of the agreement. This perspective aims to counter the allegations raised by the regulator and present a different interpretation of the situation.

Tech giant Apple has responded to the ongoing situation, stating that the purpose of this collaboration was to combat the rampant sale of counterfeit products online. The company revealed that, prior to the agreement, Apple had to invest substantial resources, both in terms of finances and time, to send numerous "take-down" warnings in an attempt to block the sale of counterfeitdevices.