The investigation concerns the circumvention of labor and tax laws
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Amazon's logistics unit in Italy has ended a months-long judicial investigation after agreeing to pay compensation and dismantle a monitoring system that had been in place for its delivery drivers, sources familiar with the matter said on Friday. This move comes as part of a broader settlement related to allegations of tax fraud and labor violations.
The case dates back to July 2024, when the Amazon subsidiary was accused of circumventing labor and tax laws by relying on cooperatives and limited liability companies to provide workers, while also evading value-added tax and underreporting social security contributions. At the time, prosecutors in Milan seized €121 million from the company.
According to the sources who spoke to Reuters, Amazon recently paid approximately €180 million ($209.83 million) to the Italian tax authorities as part of a larger €1 billion settlement involving 33 other companies that were under similar investigations in Milan.
Reports indicate that the list of companies included in the agreement comprises subsidiaries of shipping and logistics giants such as DHL, FedEx, and UPS, as well as the well-known Italian supermarket chain Esselunga.
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Under the settlement, the companies agreed to directly employ more than 50,000 workers instead of using intermediary cooperatives, with the aim of improving working conditions and reducing legal and administrative violations, according to the Italian newspaper Il Sole 24 Ore.
