![](https://www.pymnts.com/wp-content/uploads/2024/03/Amazon-eCommerce.jpg)
Italy’s tax police have seized approximately €121 million ($131 million) from an Italian unit of eCommerce giant Amazon as part of an ongoing investigation into alleged tax fraud and illegal labor practices, according to documents released by prosecutors on Tuesday.
In a detailed 94-page order, the Milan Prosecutors’ Office accuses Amazon Italia Transport, the logistics services unit of Amazon, of circumventing labor and tax laws. The prosecutors allege that the company relied on cooperatives and limited liability companies to supply workers while avoiding VAT tax duties and reducing social security payments. This system, according to the allegations, allowed Amazon to keep its service prices competitive in the Italian market.
Amazon, however, refuted the allegations, asserting compliance with all applicable laws. “We comply with all applicable laws and regulations where we operate, and require companies who work with us to do the same. We will continue to help the relevant authorities with their inquiries,” the company said in a statement.
Read more: Amazon Denies Monopolistic Threat in Mexico Amid Regulatory Scrutiny
The investigation into Amazon Italia Transport is part of a broader scrutiny of large businesses in Italy. Similar probes have targeted other major firms in recent years, including global delivery groups DHL and UPS, German logistics firm DB Schenker, and Italian supermarket chain Esselunga, prosecutors noted.
These investigations highlight the increasing efforts by Italian authorities to clamp down on tax evasion and illegal labor practices. The outcome of these inquiries could have significant implications for how multinational corporations operate in the country, particularly in terms of their use of third-party labor providers.
Source: Reuters
Featured News
365 Days of Enforcement: EU’s Tough Regulations Reshape Big Tech
Aug 26, 2024 by
CPI
OpenAI Supports California Bill for Mandatory AI Content Labels
Aug 26, 2024 by
CPI
Canada to Impose Sweeping Tariffs on Chinese Goods, Including Electric Vehicles
Aug 26, 2024 by
CPI
FTC Faces Crucial Test in Labor-Focused Antitrust Battle Over Kroger-Albertsons Merger
Aug 26, 2024 by
CPI
Banks and BASF to Pay $20M in Platinum Price Fixing Settlement
Aug 26, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – State Attorneys General
Aug 22, 2024 by
CPI
CPI Talks… …With Attorney General Phil Weiser
Aug 22, 2024 by
CPI
The Bipartisan Miracle of State Antitrust Enforcement
Aug 22, 2024 by
Gwendolyn J. Lindsay Cooley
Recent Developments in State Antitrust Enforcement: Agriculture and Food Markets
Aug 22, 2024 by
Elizabeth R. Odette
State Attorneys General: Stewards of Consumer Health and Welfare
Aug 22, 2024 by
Brooke Howlett Lovrovich