Spanish antitrust authorities have levied a hefty €194 million fine against tech giants Amazon and Apple, accusing them of colluding to stifle competition in the online retail market. The penalty, equivalent to approximately $218 million, stems from agreements made in 2018 that allegedly restricted the visibility and sales of Apple products by third-party vendors on Amazon's platform.

The Spanish National Markets and Competition Commission (CNMC) asserts that these agreements unfairly favored direct sales of Apple products through Amazon, effectively pushing out smaller retailers. The CNMC expressed concern that these practices could significantly limit competition in the online electronics market and harm the provision of marketing services to third-party retailers operating on online marketplaces within Spain.

Specifically, the regulators allege that Amazon and Apple restricted third-party advertising of Apple products on the platform. Furthermore, the agreements reportedly limited Amazon's ability to target advertising towards Apple product customers and offer them competing electronics brands. The CNMC estimates that these actions resulted in a 90% decrease in third-party Apple sellers on Amazon's platform following the 2018 agreement renewal.

Apple received the larger portion of the fine, at €143.6 million (around $161 million), while Amazon was fined €50.5 million (approximately $56.7 million). Both companies have announced their intention to appeal the decision.

Amazon contends that its business model thrives on the success of its sellers, primarily small businesses, and disputes the notion that it benefits from excluding sellers. The company claims the 2018 agreement actually benefited consumers by increasing the availability of Apple products like iPads and iPhones and offering better discounts. Apple, for its part, maintains that the agreement aimed to address counterfeiting and safety concerns, highlighting its prior practice of issuing numerous takedown notices to Amazon for questionable products. The company emphasized its commitment to consumer protection.

This case underscores Europe's increasingly assertive stance against Big Tech companies accused of leveraging their market dominance. The European Union and various national authorities have initiated numerous antitrust investigations into such practices. Two years prior, Italy also imposed fines exceeding €200 million on Apple and Amazon for similar anti-competitive practices related to the 2018 agreement and its impact on the sale of Apple and Beats products.