Home / Business and Economy / Amazon Italy Pays €180M to Settle Tax Fraud Probe
Amazon Italy Pays €180M to Settle Tax Fraud Probe
8 Dec
Summary
- Amazon Italy paid €180m to settle tax fraud and labor practice allegations.
- The company shut down a monitoring system for delivery workers.
- Over €1bn has been recovered from similar company settlements since 2023.
An Amazon logistics unit in Italy has settled a tax fraud and unlawful labor practices investigation by paying €180 million ($210 million) and shutting down a system used to monitor delivery workers. The probe, led by Milan prosecutors, alleged that the company used cooperatives and limited liability firms to engage drivers, thereby circumventing tax and labor obligations and reducing value-added tax and social security contributions.
During the investigation, prosecutors had previously seized €121 million from the Amazon unit. The recent payment contributes to a total of over €1 billion recovered since 2023 from more than 30 companies that have reached settlements in comparable cases involving outsourcing and workforce management practices.
Amazon stated that it clarified its position with authorities, who acknowledged its collaboration model with delivery partners. The company added that its engagement has improved industry-wide compliance. Milan prosecutors are also examining similar arrangements at other major companies like DHL, FedEx, UPS, and Esselunga, highlighting a widespread focus on labor practices within the logistics and retail sectors.
