Italian prosecutors are seeking to bring Amazon’s European operations and several of its managers to trial in a tax case that could have broader implications for digital commerce platforms across the European Union.
Prosecutors in Milan have requested a court proceeding against Amazon’s European subsidiary and four executives over allegations of tax evasion totaling approximately €1.2 billion ($1.38 billion). According to NewsTrackerToday, the case is unusual because the company previously reached a financial settlement with Italian tax authorities in December, agreeing to pay €527 million, including interest, to resolve a related dispute.
In earlier cases involving multinational corporations operating in Italy, such settlements typically led to the closure of criminal investigations. However, Milan prosecutors have taken a different approach in this instance, deciding to continue pursuing criminal charges despite the payment made to the Italian tax agency.
The case now moves to a preliminary hearing stage, where a judge will determine whether formal charges should proceed to trial or whether the investigation will be dismissed.
The investigation centers on alleged value-added tax (VAT) violations linked to online sales conducted in Italy between 2019 and 2021. Prosecutors and Italy’s financial police claim that Amazon’s operational model and internal algorithms allowed tens of thousands of non-European Union sellers – many based in China – to sell goods to Italian consumers without properly declaring VAT obligations.
Under Italian law, digital marketplaces facilitating such sales can be held jointly responsible for unpaid VAT by third-party sellers operating through their platforms. According to court documents referenced by investigators, this structure may have enabled certain sellers to avoid disclosing their identities and associated tax liabilities.
Liam Anderson, financial markets analyst at News Tracker Today, notes that the case highlights the growing regulatory scrutiny facing global digital marketplaces in Europe. In his view, tax authorities across the EU are increasingly examining whether large online platforms should bear greater responsibility for the compliance practices of third-party merchants operating within their ecosystems.
The Milan prosecutors have also formally named Italy’s Ministry of Economy as the injured party in the case, reflecting the scale of the alleged tax losses. Isabella Moretti, corporate strategy and M&A analyst, suggests that the legal proceedings could have implications beyond Italy if the court ultimately validates the prosecutors’ interpretation of platform responsibility. Because VAT rules are harmonized across the European Union, she notes that similar legal arguments could potentially influence regulatory actions in other EU jurisdictions.
As NewsTrackerToday has observed in previous coverage of digital economy regulation, governments across Europe are increasingly tightening oversight of global technology companies operating within their markets. Tax compliance, data protection, and marketplace accountability have become central issues in the evolving regulatory framework governing large digital platforms.
The tax case is one of several investigations involving Amazon in Italy. The European Public Prosecutor’s Office is reportedly examining similar alleged violations covering the period between 2021 and 2024.
In addition, Milan prosecutors are conducting two further investigations related to the company. One concerns potential customs and tax fraud linked to imports from China, while another examines whether Amazon may have maintained an undeclared permanent establishment in Italy between 2019 and 2024, which could have resulted in higher tax obligations.
Separately, Italy’s data protection authority recently ordered Amazon’s local unit to stop using personal data from more than 1,800 warehouse employees at a logistics facility northeast of Rome. For global technology companies operating across multiple regulatory environments, the case illustrates the increasing complexity of compliance obligations within the European digital economy. From a broader perspective, NewsTrackerToday notes that disputes over taxation and platform responsibility are likely to remain a defining issue as governments continue to expand oversight of large multinational technology firms.
