Amazon Italy Pays €180M in Compensation as Delivery Staff Probe Ends

Amazon’s Italian logistics unit has resolved a major investigation into alleged tax fraud and illegal labor practices by paying roughly €180 million to the Italian tax authority, according to sources familiar with the settlement. The case, which surfaced in July 2024, accused the e-commerce giant’s logistics services division of sidestepping labor and tax regulations by relying on cooperatives and limited liability companies to supply delivery workers. This arrangement allegedly enabled the avoidance of VAT payments and reduced social security contributions. Earlier in the probe, Milan prosecutors seized €121 million from the unit as part of their inquiry.

The compensation is part of a broader €1-billion settlement involving 33 companies operating in Italy that faced similar allegations. Among the companies included in the agreement are the Italian branches of DHL, FedEx, and UPS, as well as supermarket chain Esselunga. The settlement was first reported by Italy’s Il Sole 24 Ore newspaper.

In addition to the financial payment, Amazon and the other companies involved have agreed to eliminate certain worker-monitoring systems and commit to directly employing more than 50,000 delivery staff who were previously hired through third-party cooperatives. This shift is expected to significantly change labor practices within the country’s logistics and delivery sectors, ensuring stronger worker protections and more transparent employment structures.

The case highlights growing regulatory scrutiny over the gig economy and logistics labor models across Europe, where authorities are increasingly focused on combating tax evasion and strengthening labor rights. Amazon’s settlement marks a substantial step toward resolving long-running disputes with Italian regulators while signaling broader changes in how global delivery companies manage staffing and compliance.