The Italian Competition Authority (AGCM) has fined two Amazon Group companies, Amazon Services Europe and Amazon EU, a total of €10 million (about $10.7 million) for allegedly unfair commercial practices, As reported by Reuters. The investigation shows that Amazon pre-selects the repurchase option, which is part of the “Register and Save” program, for a wide selection of products listed on Amazon Italy.

Amazon’s Subscribe & Save program offers free shipping, discounted packaging, and frequent scheduled deliveries on qualifying products. The feature allows customers to easily sign up for scheduled or repeat deliveries of the products they use or order regularly. The program offers a discount between 5 and 15% on the product, where the level of the discount is determined according to the number of products the customer subscribes to.

The Italian watchdog claims this practice “significantly limits the consumer’s freedom of choice”, when consumers were more likely to opt for regular deliveries instead of one-off purchases.

Here is an excerpt from AGCM official press release:

The graphic layout of the pre-selected repurchase option may lead consumers to buy products from time to time – even when there is no real need – thus limiting their ability to choose freely. Furthermore, the company’s conduct was considered to be contrary to the standards of professional rigor. As a large operator, Amazon is expected to design its online interfaces, especially those related to purchase processes, in a way that will allow consumers to make free and informed commercial decisions.

When the investigation was initially opened, the AGCM also challenged the early selection of the express delivery option for a fee. Amazon then offered to pre-select only the free shipping option, which the authority accepted.

In an email to Reuters, Amazon said it would challenge the decision and go on appeal. The company also noted that the sign-up and save option has helped customers save more than 40 million euros since its launch in Italy.

Through Reuters