Italy fines Amazon subsidiaries for restricting consumer choices

Italy’s antitrust watchdog has imposed a 10 million euro fine on two Amazon subsidiaries for what it describes as unfair commercial practices.

This decision was announced on Wednesday, with the U.S. e-commerce giant indicating plans to challenge the ruling.

Automatic subscription setting limits choices

According to the Italian regulator, Amazon infringed on consumer rights by setting the ‘Subscribe and Save’ option as the default for numerous products on its website.

This setting led customers to unintentionally opt for scheduled deliveries instead of one-time purchases, thereby “significantly restricting consumers’ freedom of choice.”

Amazon to appeal the decision

In response to the antitrust penalty, Amazon has expressed disagreement with the authority’s claims and has announced its intention to appeal.

The company defends its subscription service, stating,

“Every day customers benefit from the Subscribe and Save program by saving money and time on regular deliveries of items they routinely use.”

Economic impact of ‘Subscribe and Save’

Despite the controversy, Amazon reports that the ‘Subscribe and Save’ feature has been economically beneficial for its users in Italy, claiming that it has facilitated savings of over 40 million euros since its introduction comes from discounts offered on recurring orders compared to the cost of single-item purchases.

As the legal proceedings unfold, the case may set a significant precedent for how subscription services are marketed and chosen by consumers in online platforms.

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