Amazon just agreed to write a massive check to the Italian government, but the company’s legal headaches in the country are far from over. On Wednesday, the American tech giant struck a deal with Italy’s tax collection agency to pay 510 million euros—roughly $582 million—to settle an ongoing dispute. Under normal circumstances, this would end the investigation and let everyone move on. However, sources say a rare conflict between government branches is keeping the heat on Amazon.
In a surprising twist, prosecutors in Milan strongly oppose the settlement that the revenue agency accepted. They plan to ignore the accord and continue their own criminal investigation. This creates a dangerous situation for Amazon, as the law-enforcement side of the Italian system is refusing to align with the tax-collection side.
The prosecutors believe the alleged tax evasion is much larger than the settlement covers. While the tax agency accepted the 510 million euro payment, the prosecutors suspect Amazon evaded closer to 1.2 billion euros in taxes between 2019 and 2021. According to sources familiar with the matter, the Milan legal team expects to wrap up this part of the probe early next year. They argue that the settlement does not adequately address the scale of the suspected financial gaps.
To make matters worse for the online retailer, this 2019-2021 dispute is just one part of a triple threat. The Milan prosecutors are currently running three simultaneous investigations into the company. Beyond the case involving the 1.2 billion-euro discrepancy, they are digging into alleged tax evasion spanning 2021 through 2024. Additionally, they have opened a third file regarding alleged customs and tax fraud related to goods imported from China.
This aggressive stance highlights a growing trend in Europe, where authorities are taking a harder look at how U.S. tech giants manage their money. While Amazon has agreed to pay half a billion euros to clear the air, the prosecutors’ refusal to back down suggests the company will face intense legal scrutiny in Italy for the foreseeable future.
