Apple, Amazon fined to the tune of €200m for colluding over Beats headphones sales
- Reference: 1637742546
- News link: https://www.theregister.co.uk/2021/11/24/apple_amazon_italy/
- Source link:
At issue was a contract between Apple and Amazon, signed October 31, 2018, that restricted the sale of Cupertino's electronics and Beats-branded gear on Amazon.it to just carefully chosen resellers, the regulator [1]said on Tuesday.
Even if you were an authorized Apple reseller, if you weren't on Apple's special list, you couldn't flog its wares on Amazon's Italian souk. That was deemed by the watchdog to be against Europe's rules on fair competition and pricing in the marketplace. Apple bought Beats in 2014.
[2]
Apple was hardest hit, with a €134.5m ($151m, £113m) penalty while Amazon is on the hook for €68.7m ($77m, £58m). In Apple's case, this amounts to 14 hours of annual profit, judging from its fiscal 2021 financial results
[3]PDF
and for Amazon, about one day of full-year profit, according to its latest [4]figures . Tim Cook and Andy Jassy will be seriously concerned.[5]
Amazon and Apple were also told to knock off the anti-competitive arrangement, and allow more resellers to tout the hardware.
[6]Rap chap tapped for $3 BEELLION: Apple buys Dr Dre's Beats
[7]Apple's 'shoddy' Beats headphones get slammed in lawsuit
[8]Italian monopoly watchdog asks Google to cough up a few euros for illegally blocking an Android Auto app
[9]Facebook appeals ruling that it stole tech. So, Italian judge issues new judgment: Pay 10 times the original fine
"To ensure our customers purchase genuine products, we work closely with our reseller partners and have dedicated teams of experts around the world who work with law enforcement, customs and merchants to ensure only genuine Apple products are being sold," an Apple spokesperson told The Register .
"We respect the Italian Competition Authority but believe we have done nothing wrong and plan to appeal."
Amazon had yet to comment at time of publication. It is understood, like Apple, Amazon plans to contest its fine. ®
Get our [10]Tech Resources
[1] https://www.agcm.it/media/comunicati-stampa/2021/11/I842-
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YZ4ba6rGqDHzWN01XbmY9wAAAME&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.apple.com/newsroom/pdfs/FY21_Q4_Consolidated_Financial_Statements.pdf
[4] https://ir.aboutamazon.com/news-release/news-release-details/2021/Amazon.com-Announces-Third-Quarter-Results/default.aspx
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/personaltech&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YZ4ba6rGqDHzWN01XbmY9wAAAME&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://www.theregister.com/2014/05/28/apple_makes_it_official_3_beeelion_for_beats/
[7] https://www.theregister.com/2017/09/13/apple_powerbeats_headphones_slammed/
[8] https://www.theregister.com/2021/05/13/google_italian_fine/
[9] https://www.theregister.com/2021/01/06/facebook_appeal_italy/
[10] https://whitepapers.theregister.com/
Re: That's Terrible
Try doing this with Levi Jeans.
Remember back in the 90s when Tesco tried to flog them?
'mericans have a track record with this. It's not just Apple. Try buying a pair of bose....
To ensure our customers purchase genuine products"
Are they saying other allegedly Apple products on sale through other outlets aren't genuine? If so somebody must be making an exorbitant markup on £400 wheels.
It is understood, like Apple, Amazon plans to contest its fine
They want to contest the amount of the fine ... This means they are not contesting the charges/accusations?
Competition
It's funny that the regulators are focusing on tiny non-issues instead of addressing the real problem - like big corporations paying less tax than SMEs - in effect having a huge competitive advantage.
If competition authority was serious, they should just ban the business until it stops using tax avoidance structures and pays taxes like everyone else.
That's Terrible
Not being able to buy overpriced Apple and Beats branded tat online.
It's a disgrace.