Apple and Amazon Face Scrutiny Over Delayed Compliance with Spanish Regulatory Order
In a recent development, Spain’s National Commission on Markets and Competition (CNMC) has determined that tech giants Apple and Amazon failed to promptly eliminate anti-competitive clauses from their distribution agreement, as mandated by the regulator. This delay, spanning nearly two years, has heightened the possibility of additional penalties for both companies.
Background of the Regulatory Action
In July 2023, the CNMC imposed a combined fine of €194 million on Apple and Amazon. The penalty was due to specific clauses in their agreement that restricted the number of Apple resellers permitted to operate on Amazon’s Spanish platform. Additionally, these terms limited the promotion of competing products, thereby stifling competition and consumer choice.
Delayed Compliance and Potential Repercussions
Despite the clear directive, Apple and Amazon did not remove the contentious clauses until May 2025. This protracted inaction has been viewed by the CNMC as a potential infringement, paving the way for further fines. The regulator emphasized that the agreement not only reduced advertising opportunities for rival brands but also hindered Amazon from conducting marketing campaigns that featured products competing with Apple’s offerings.
Responses from Apple and Amazon
Both companies have expressed their disagreement with the CNMC’s findings. Apple stated its respect for the regulator but contested the decision, asserting its consistent compliance with authorities’ orders. The company also highlighted its commitment to protecting customers from counterfeit products and ensuring the authenticity of Apple devices.
Amazon echoed a similar sentiment, confirming its intention to appeal the decision. A spokesperson emphasized that Amazon’s business model thrives on the success of third-party sellers and refuted any notion that the company benefits from excluding certain sellers.
Ongoing Legal Proceedings
The initial fine from 2023 has been appealed by both Apple and Amazon before Spain’s High Court. As of now, the penalty remains suspended pending the court’s judgment. This ongoing legal battle underscores the complexities and challenges tech companies face in navigating regulatory landscapes, especially concerning competition laws and market fairness.
Broader Implications
This case highlights the increasing scrutiny that major tech companies are under regarding their business practices and compliance with competition laws. The delayed response by Apple and Amazon not only risks financial penalties but also raises questions about their commitment to fair market practices. As regulators worldwide tighten their oversight, companies may need to reassess their strategies to ensure timely compliance and maintain consumer trust.
