Italy’s competitors watchdog AGCM is making an attempt to shut a authorized loophole that has allowed a number of corporations to evade antitrust fines and should assist Amazon in an ongoing attraction, a authorized knowledgeable and two sources advised Reuters.
The European Commission is intently following the matter, which has potential implications for a report EUR 1.1 billion (practically Rs. 9,860 crore) nice in Italy that the US e-commerce firm is difficult earlier than native administrative courts.
A 1981 regulation, solely not too long ago utilized to antitrust instances in Italy, implies that the AGCM should notify corporations focused by its investigations inside 90 days of it turning into conscious of alleged anti-competitive behaviour.
The regulation has been utilized by the Council of State, Italy’s high administrative court docket, over the past three years to scrap a number of antitrust penalties on account of a failure to meet that point limitation.
Law professor Michele Ainis, an AGCM board member till March, advised Reuters that the Council of State’s strategy was significantly problematic, because the 90-day limitation is unrealistic for advanced antitrust instances.
“The Italian antitrust is the only (competition) agency in Europe subject to this (time) guillotine,” he stated in a telephone interview. “It is such a tight deadline that it is almost impossible to respect.”
Amazon was handed the nice in 2021 by the AGCM for alleged abuse of a dominant place within the Italian market to favour the adoption of its personal logistics service by sellers lively on Amazon.it.
Amazon stated on the time it “strongly disagreed” with the Italian regulator’s choice and would attraction.
Two sources with information of the scenario confirmed that the AGCM was involved about dropping extra instances that go earlier than the Council of State on time limitation grounds, together with on the Amazon nice.
The Council of State is the ultimate court docket of attraction in opposition to AGCM choices.
Two different sources stated the difficulty of the 90-day rule is among the arguments that Amazon has introduced in its attraction of the EUR 1.1 billion nice, presently sitting earlier than a lower-level regional administrative court docket.
EU involvement
The European Commission stated in an announcement to Reuters it was “aware of the recent developments in the case-law of the Italian courts and of the concerns raised by the Italian competition authority.”
Commission spokeswoman Arianna Podesta stated the EU govt “is in contact with Italian authorities”, however declined to verify it had despatched a letter to Rome as a part of procedures that might lead to an EU infringement process.
Ainis stated if EU authorized proceedings had been wanted to settle the difficulty this is able to be “the worst scenario” for Italy, as it might take time and lead to doable fines.
Alternatively, the federal government may move a regulation to shut the loophole, or Italian administrative judges may search an opinion from the EU Court of Justice.
Ainis believed any EU authorized motion could be primarily based on a 2019 EU directive on the prerogatives of nationwide competitors authorities.
Podesta cited it in her assertion, indicating it was related.
She stated it was essential that nationwide competitors authorities have ample time to conduct all the mandatory investigations in advanced instances.
“It is also important that national competition authorities are able to prioritise certain cases and deprioritise others,” she added.
The AGCM, the Council of State and Amazon Italy declined to remark.
© Thomson Reuters 2023
