Amazon pays Italy 180 million euros to end tax, labour probe, sources say


FILE PHOTO: Amazon logo is seen in this illustration created on February 11, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

ROME, Dec 5 (Reuters) - An Italian unit of e-commerce giant Amazon has paid compensation and scrapped a monitoring system for delivery staff, ending a probe into alleged tax fraud and illegal labour practices, sources with knowledge of the matter said on Friday.

In July 2024 the group's logistics services unit was accused of circumventing labour and tax laws, relying on cooperatives or limited liability companies that supplied it with workers, avoiding VAT tax and reducing social security payments.

At the time, Milan prosecutors seized 121 million euros from the unit.

The group has now paid around 180 million euros ($209.83 million) to the Italian tax agency as part of a wider 1-billion-euro settlement involving 33 companies that had been targeted by similar investigations in Milan, the two sources said.

These include Italian units of DHL, FedEx and Ups, and Italian supermarket chain Esselunga, they added.

News of the settlement was first reported by Il Sole 24 Ore newspaper.

Under the deal, the companies that were under investigation also agreed to directly employ more than 50,000 workers who were previously hired indirectly through the cooperatives, the paper and the sources said.

($1 = 0.8579 euros)

(Reporting by Emilio Parodi, writing by Giulia Segreti, editing by Alvise Armellini)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Tech News

Meta’s Zuckerberg plans deep cuts�for metaverse efforts
Tech tracking to tackle human-wildlife conflict in Zimbabwe
Like fancy Japanese toilets? You’ll love the sound of this.
Facebook 'supreme court' admits 'frustrations' in five years of work
Russia restricts FaceTime, its latest step in controlling online communications
Studies: AI chatbots can influence voters
LG Elec says Microsoft and LG affiliates pursuing cooperation on data centres
Apple appoints Meta's Newstead as general counsel amid executive changes
AI's rise stirs excitement, sparks job worries
Australia's NEXTDC inks MoU with OpenAI to develop AI infrastructure in Sydney, shares jump

Others Also Read