The Italian logistics unit of Amazon has paid about €180 million to the tax agency and dismantled a monitoring system for delivery staff, closing a probe into alleged tax fraud and illegal labour practices, according to sources cited by Reuters.
The investigation began in July 2024, when Milan prosecutors accused the unit of avoiding VAT and reducing social security payments by using cooperatives and small limited companies to supply delivery workers. At the time, authorities seized €121 million from the company.
The payment forms part of a wider €1 billion settlement involving 33 firms that faced similar investigations in Milan. These firms include the Italian divisions of DHL, FedEx and UPS, as well as supermarket group Esselunga. Il Sole 24 Ore first reported the agreement.
As part of the deal, companies under investigation agreed to directly employ more than 50,000 workers previously hired through cooperatives. Sources said Amazon also removed a software system used to track drivers in real time, which prosecutors had described as an excessive control tool.
Amazon said it had clarified its position with the authorities and maintained that it does not use cooperatives or permit subcontracting in its delivery network.
The Milan probe is one of several recent investigations into labour and tax practices in the logistics sector. Prosecutors say the settlement aims to improve transparency and protect workers in a part of the economy that has expanded rapidly in recent years.
