Following a decision in 2023 that penalized Apple and Amazon for anti-competitive distribution terms, Spain’s competition authority is now indicating that the companies delayed compliance and may impose an additional penalty. Here are the specifics.
### A little context
In 2023, Spain’s Comisión Nacional de los Mercados y la Competencia (CNMC) levied fines totaling €194 million (around $230 million) against Apple and Amazon due to anti-competitive behavior.
This case originated in 2018, when the two firms established a multi-national agreement that limited the sale of Apple and Beats products to authorized resellers of Apple. The arrangement – which was effective in the US, UK, France, Germany, Italy, Spain, Japan, and India – led to the establishment of an official Apple Store on Amazon.
Moreover, the agreement limited advertising opportunities for Apple’s competitors on Amazon’s Spanish site when users searched for Apple products, allegedly obstructing over 90% of the existing retailers selling Apple devices on the platform.
At that time, the CNMC determined that the agreement was anti-competitive and imposed fines (€143.6 million on Apple and €50.5 million on Amazon), while also mandating the immediate removal of the offending clauses.
Both companies lodged appeals against the CNMC’s 2023 ruling with Spain’s High Court, resulting in a suspension of the original fine pending a verdict.
### Updates on the case
However, the companies’ appeal concerning the original fine did not free them from the requirement to eliminate the anti-competitive clauses.
Therefore, when the CNMC discovered that Apple and Amazon delayed their removal until May 2025, nearly two years after being instructed to act immediately, it initiated a separate investigation for non-compliance.
As reported today, this investigation has now been completed, and the results could lead to an additional penalty beyond the original one:
Last October, the regulatory body suggested commencing an inquiry into the companies’ inaction under the cease-and-desist directive until May 2025, when the clauses were removed. At the time, the regulator indicated potential signs of infringement due to non-compliance.
In a statement, Apple expressed its disagreement with the CNMC’s conclusions, asserting that it had consistently adhered to authority orders. The company also portrayed the matter as an initiative to combat counterfeit products rather than an effort to hinder legitimate competition on Amazon.
Amazon, for its part, also communicated to Reuters its disagreement with the ruling and plans to appeal, asserting that it would be contrary to its own interests to curtail the visibility of small and medium-sized sellers.