Amazon Pays €180 Million to Settle Italy Tax and Labour Probe
GeokHub
Contributing Writer
ROME — Dec 5 (GeokHub) An Italian unit of Amazon has agreed to pay around €180 million to resolve a long-running investigation into alleged tax fraud and labour-law violations, effectively ending the probe. As part of the settlement, the company also dismantled a delivery-staff monitoring system that had come under scrutiny.
The investigation — launched in July 2024 — accused Amazon’s logistics division of using cooperatives or limited-liability subcontractors to supply workers, a method that prosecutors said allowed avoidance of VAT and social-security contributions. Earlier in the probe, Italian authorities seized €121 million from the unit.
Beyond the monetary payment, Amazon committed to overhauling how its delivery workforce is managed, abandoning the controversial subcontracting model and promising direct employment practices for workers involved in its Italian logistics network.
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The case is part of a broader crackdown in Italy targeting major logistics and courier firms suspected of using similar practices — and the settlement marks one of the largest yet among a group of over 30 companies that have faced related investigations.
