Retail & logistics vertical integration: Implications on market definition

In the summer of 2020, the Italian postal sector regulator AGCom published an interim decision finding Amazon Italia Transport to hold allegedly significant market power (SMP) in a relevant market defined as “domestic B2C deferred e-commerce parcel delivery services”. AGCom’s interim finding of SMP was based on four alleged factors: i) Amazon’s presumed market share in the defined relevant market, which is a minor subset of all delivery services, ii) Amazon’s vertically integrated business model, iii) Amazon’s bargaining power vis-à-vis delivery service providers, and iv) the role of specific investments as entry barriers.  

The AGCom interim decision, as well as the latest policy position papers from the European Regulators Group for Postal Services trigger several questions relevant both to the future development of EU level postal policy and to regulatory outcomes in Italy: 

This study provides observations for consideration by AGCom and other policymakers in evaluating the effect on parcel delivery activities of vertically integrated players and in relation to the ongoing evaluation of the European Postal Services Directive. Our main findings are as follows:

The study is commissioned by Amazon.

Download the executive summary in Italian here