Italy seizes €121 million from Amazon’s logistic unit

The alleged system is said to have enabled Amazon Italia Transport to remain competitive in the Italian market.

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Italian tax police have seized €121 million from Amazon’s Italian logistics unit as part of an investigation into alleged tax fraud and illegal labour practices. The Milan Prosecutors’ Office has accused Amazon Italia Transport of bypassing labour and tax laws by using cooperatives and limited liability companies to supply workers, avoiding VAT tax duties, and reducing social security payments.

Prosecutors claim this system allowed Amazon to maintain competitive service prices in the Italian market. An Amazon spokesperson in Italy did not comment on the case when contacted by Reuters.

The investigation follows similar probes targeting other large businesses in recent years, including DHL, UPS, DB Schenker, and the Italian supermarket chain Esselunga.