Amazon pays Italy 180 million euros to end tax, labour probe, sources say

MILAN, Dec 5 (Reuters) - An Italian unit of e-commerce giant Amazon has paid compensation and scrapped a monitoring system for delivery staff, ending a probe into alleged tax fraud and illegal labour practices, sources with knowledge of the matter said on Friday.

In July 2024 the group's logistics services unit was accused of circumventing labour and tax laws, relying on cooperatives or limited liability companies that supplied it with workers, avoiding VAT tax and reducing social security payments.

At the time, Milan prosecutors seized 121 million euros from the unit.

The group has now paid around 180 million euros ($210 million) to the Italian tax agency, joining more than 30 other companies who have over the past two years reached settlements to close similar investigations.

The total amount paid is more than 1 billion euros, according to a judicial document seen by Reuters.

"We have clarified our position with the relevant authorities, who have recognized the high standards of our collaboration model with delivery partners," Amazon said in a statement.

"Our engagement with Italian institutions and other stakeholders has improved compliance across the entire industry," the company added.

The Milan prosecutors' office has investigated several large businesses over their hiring practices, including Italian units of DHL, FedEx and UPS <UPS.N>, and Italian supermarket chain Esselunga.

News of Amazon's settlement was first reported by Il Sole 24 Ore newspaper.

($1 = 0.8579 euros)

(Reporting by Emilio Parodi, writing by Giulia Segreti, editing by Alvise Armellini, Elaine Hardcastle)