2023-07-18 18:30:44
After an investigation that began in 2021, the National Market and Competition Commission (National Commission of Markets and Competitionor CNMC) from Spain fined a Apple em €143 million (almost R$772 million) and, Amazonem €50.5 million (~R$272 million).
The reason for the sanction was collusion to limit online sales of Apple devices and competitors in the Amazon marketplace, due to two agreements entered into between the companies, in 2018, with a view to the direct sale of devices by Apple in the online store. The decision, however, is still appealable.
The crux of the matter is that, as reported by Archyde.comthe agreements had anticompetitive clauses, so that other sellers of Apple products suffered unwarranted restrictions on the Amazon marketplace, according to CNMC. Thus, only distributors authorized by the Cupertino giant might sell branded products on the shopping site.
According to the regulatory body, the measures meant that more than 90% of resellers were excluded from the main electronics online sales channels in Spain. In addition to marketing restrictions, the agreements limited the ads for other brands of technology that Amazon might run, including a ban on ads suggesting swapping iPhones for other devices, according to TechCrunch.
It is worth noting that the resellers who were affected by the terms of the agreement sold, before being banned, Apple products for more competitive prices than usual. Thus, the average values of the company’s devices increased in Spain following the measures were applied. There were also impacts in other member states of the European Union, as some sellers were from other countries in the bloc.
In view of the facts discovered, CNMC concluded that such actions were taken by Apple/Amazon with the aim of reducing Apple’s competitive pressure in Spain. More than that, the agreements have undermined the ability of consumers to discover new brands and products, in addition to increasing the cost of their search.
In this way, the sales dynamics of the company’s products on the website were changed, through what was considered conduct that violated competition laws in Spain. Thus, the fines were applied and the commission also ordered that the sanctioned actions be ceased.
Apple and Amazon respond
In response to Archyde.com and to TechCrunch, Apple said that said clauses were inserted into the agreement to combat the sale of fake products on the Amazon marketplace. According to Apple, “tens of thousands” of requests were sent to remove ads from counterfeit Amazon devices, but the measure would not have been enough.
Thus, following conducting its own tests that showed the incidence of the problem, the agreement was signed. According to the Cupertino giant, following the clauses came into force, there was a significant decrease in counterfeits and an improvement in the user experience. The company also recalled that the jurisprudence accepts limitations on marketplaces in the name of consumer protection and a premium experience, although it has not given justification for limitations on competitor ads.
Amazon, in turn, stressed that it disagrees with the decision and understanding that sellers would be excluded from the company’s marketplace, noting that its own business model depends on the success of sellers. It was also said that following the Apple deal, the number of product options on the platform more than doubled in the last four years, while discounts on iPhones and iPads increased by between 6% and 8%.
Decision can still be appealed
As stated at the beginning, the CNMC decision can still be appealed to the so-called Audiencia Nacional, which is a higher court of the Spanish Judiciary. It is worth remembering that Apple and Amazon were fined for a similar reason in Italy in 2021, but managed to have the sanctions discarded following filing appeals.
Agreements like the one signed in Spain were closed in several other countries, so that Apple might sell its devices on Amazon. In the United States, as remembered by AppleInsiderother resellers must be authorized by Apple or purchase $2.5 million on refurbished products every 90 days.
In the US, the number of people selling Apple devices has also been decreasing, showing that the understanding of the Spanish commission can actually be consistent with the facts and apply to even more places.
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