An Italian logistics subsidiary of Amazon has paid €180m ($210m) and shut down a monitoring system for delivery workers to settle an investigation into suspected tax fraud and unlawful labour practices, as reported by Reuters. 

The case, led by Milan prosecutors, focused on allegations made in July 2024 that the unit had bypassed labour and tax obligations.  

The company was accused of using cooperatives and limited liability companies to provide drivers in a way that reduced value-added tax liabilities and social security contributions. 

During the inquiry, prosecutors seized €121m from the Amazon unit. 

The latest payment to Italy’s tax authority places Amazon alongside more than 30 other companies that have agreed settlements since 2023 in comparable investigations into outsourcing models and workforce management

According to a judicial document seen by Reuters, total recoveries from these cases exceed €1bn. 

Amazon stated: “We have clarified our position with the relevant authorities, who have recognised the high standards of our collaboration model with delivery partners... Our engagement with Italian institutions and other stakeholders has improved compliance across the entire industry.” 

Milan prosecutors have examined similar labour arrangements at several major companies, including the Italian units of DHL, FedEx and UPS, and supermarket chain Esselunga. 

In early December 2025, Amazon drew up plans to expand its own national delivery operations and potentially phase out its long-running reliance on the US Postal Service, after negotiations over a new shipping agreement stalled. 

The e-commerce giant has been in talks with USPS over so-called “negotiated service agreements” – arrangements that set bespoke prices and delivery commitments for the agency’s largest shipping clients.   

Amazon had sought a fresh deal that would secure more favourable rates and establish higher minimum parcel volumes.