Italian authorities have seized over $131 million from Amazon’s Italy-based logistical services unit following an investigation into alleged tax fraud and illegal labor practices. The Milan Prosecutor’s Office issued a 94-page order on July 23, claiming that Amazon Italia Logistica Srl violated labor and tax laws to maintain competitive pricing in the Italian market.
The order accuses Amazon of subcontracting labor in a manner that violated Italian labor regulations and evading certain taxes and social security contributions. Despite these allegations, an Amazon spokesperson denied any wrongdoing and stated that the company will cooperate with the investigation.
In response to the negative coverage, Amazon released a statement emphasizing its positive impact on Italy’s economy and job creation efforts. The company aims to employ around 19,000 people in permanent roles by the end of 2024, showcasing its commitment to diversity, equity, and inclusion.
The statement did not address the specific allegations but focused on the company’s contributions to Italy’s economic development and worker safety measures.
Reuters has contributed to this report.
