Amazon pays €180m to settle tax and labour probe in Italy

Core Points - An Italian logistics subsidiary of Amazon has settled an investigation into tax fraud and unlawful labor practices by paying €180 million ($210 million) and shutting down a monitoring system for delivery workers [1][2] - The investigation, led by Milan prosecutors, revealed that the subsidiary allegedly bypassed labor and tax obligations by using cooperatives and limited liability companies to provide drivers, which reduced value-added tax liabilities and social security contributions [2][3] - The total recoveries from similar investigations into outsourcing models and workforce management across various companies have exceeded €1 billion since 2023 [2] Company Actions - Amazon has clarified its position with relevant authorities, stating that its collaboration model with delivery partners meets high standards, and has improved compliance across the industry [3] - The company is planning to expand its own national delivery operations and potentially reduce reliance on the US Postal Service due to stalled negotiations over a new shipping agreement [4][5] - Amazon sought a new deal with USPS to secure more favorable rates and establish higher minimum parcel volumes [5]