The National Court temporarily suspended Fines imposed by the National Markets and Competition Commission (CNMC) Imposed on Apple and Amazon in July 2023 For a joint amount of 194.15 million euros To adopt and enforce certain restrictions on competition in Amazon’s ‘marketplace’ in Spain and affecting third-party sellers of Apple products and competing products of the latter company.
The decision of the National Court, which partially approved the appeal of both companies against the CNMC decision, was also reflected in two decisions dated December 2023, as contained in documents published in the Judicial Documentation Center (Cendoj). ‘La Información’ newspaper.
Thus, Article 6 of the Disputed Administrative Chamber of the National Court also temporarily suspended the fine of 128.64 million euros imposed on Apple Distribution International and 15 million euros imposed on Apple (143.64 million euros in total). 50.51 million euros for Amazon Services Europe, Amazon Europe Core and Amazon EU.
In both cases, the National Court requires a precautionary suspension of fines. Companies provide guarantees for the specified amounts..
The judicial body also temporarily suspended the ban on all named companies from contracting with the public administration, a measure included in the CNMC’s decision.
However, the National Court reiterated the obligation of both Apple and Amazon to stop the conduct that led to the fine imposed by the CNMC.
Amazon believes this will cause “serious harm”
In its appeal, Amazon claims that payment of the full sanctions imposed would constitute immediate commitment to the sanctions. “Almost 25% of companies’ liquid assets as of December 31, 2022” impressed.
“These are sums allocated both to the company’s current expenses (payments to suppliers, salaries, etc.) and to already planned and ongoing capital investments across Europe, including the opening of new distribution centers and warehousing, which will enable distribution to be brought closer to customers and “Therefore, it leads to a more sustainable distribution.”
“The accounting situation of the sanctioned companies as a whole will lead to the following results: Damage amounting to 720,446,350 Euros. “As of December 31, 2022, ASE, AEC and AEU have a total debt of 3 million 295 million 988 thousand 782 euros to the Public Treasury, Social Security and third parties.”
In this context, Amazon sources told Europa Press that the company will continue to appeal as it “disagrees” with the CNMC’s decision.
“We also disagree with CNMC’s suggestion that Amazon benefits by excluding sellers from the store, because our business model is built precisely on the success of companies selling through Amazon, many of which are SMEs. The outcome of the agreement with AppleSpanish customers benefited from a wide range of products, which has more than doubled in the last four years“Along with great deals, the company also offers faster delivery,” he added.
In its appeal, Apple argued that the fine imposed represented percentages of sales of Apple-branded electronic products in the online retail market in Spain.
“Payment of the penalty may jeopardize the appellants’ ability, incentives and/or capacity to invest in the so-called affected market and, in particular, in Amazon’s ‘marketplace’ in Spain,” the decision emphasizes.
Second highest fine from CNMC
This penalty for Apple and Amazon Second highest level imposed by CNMC in its historyThis amount was surpassed by the €203.6 million applied to the six main construction companies in Spain alone, to change the process of competition in infrastructure construction tenders that had existed for over 25 years.
As CNMC reported in July 2023, both companies agreed to add a number of clauses to the contracts governing Amazon’s terms as an Apple distributor affecting the sale of Apple products and other brands on the Amazon website in Spain.
On the one hand, They “unfairly” restricted the number of sellers of Apple products on the Amazon website in Spain and on the other hand, They have limited the ad space where rival Apple products can be advertised on the Amazon website in SpainCNMC later provided detailed information.
They also limited the possibility of Amazon directing marketing campaigns to offer customers of Apple products on its website in Spain competing products from other brands.