Spain penalizes Amazon and Apple for suspected price collusion.

Spain has fined Amazon and Apple a total of 194.1 million euros (over $218 million) for antitrust violations. According to Reuters, the penalties relate to a deal the companies made in 2018 that made Amazon an authorized Apple dealer but also included alleged anti-competitive clauses. Spain’s antitrust regulator, Comisión Nacional de los Mercados y la Competencia (CNMC), stated that the two companies unjustifiably restricted the number of sellers of Apple products on the Amazon website in Spain.

The CNMC fined Apple 143.6 million euros and Amazon 50.5 million euros for their role in the alleged price-fixing conspiracy, based on contracts signed on October 31st, 2018. Over 90 percent of existing vendors selling Apple products on Amazon were blocked from the storefront after the deal. Additionally, Amazon allegedly limited non-Spanish retailers in the European Union from reaching Spanish customers and decreased advertising from Apple’s competitors in consumer search results for Apple devices. The result, according to the CNMC, was higher online prices for Apple devices in Spain.

Both Amazon and Apple denied that the deal harmed consumers. An Amazon representative stated to Reuters that Amazon’s business model relies on the success of companies selling through its marketplace, refuting the suggestion that Amazon benefits from excluding sellers. Apple defended the deal as a measure to combat counterfeit sales, noting that they have invested significant resources in combating fake products.

The companies have two months to appeal the CNMC’s decision, and both Amazon and Apple plan to do so.