Amazon has abandoned plans to launch commercial drone deliveries in Italy, following a strategic review, reported Reuters.
The US-based retailer cited broader business regulatory challenges in the country.
The company said that while it had made positive progress with Italian aerospace regulators, the wider business regulatory framework in Italy did not support its longer-term objectives for the programme.
Amazon’s decision comes after the group announced in December 2024 that it had successfully completed initial delivery drone tests in San Salvo, in Italy’s central Abruzzo region.
Italy’s civil aviation authority, ENAC, described the decision as unexpected, stating that the move was driven by company policy and linked to recent financial events involving the group.
In a statement to Reuters, Amazon said: “Following a strategic review, we have decided to stop our commercial drone delivery plans in Italy.”
The company added: “Despite positive engagement and progress with Italian aerospace regulators, the broader business regulatory framework in the country does not, at this time, support our longer-term objectives for this programme.”
Amazon had previously positioned Italy as a test location for its drone delivery operations but has now decided not to proceed with commercial deployment.
Earlier this month, in a separate development, Amazon reached a €510m ($582m) settlement with Italy’s tax authority to resolve a longstanding tax dispute.
The deal is the latest in a series of tax and compliance challenges the company has encountered in the country.
However, prosecutors in Milan have declined to endorse the agreement between the revenue agency and the US-based retailer and plan to continue their criminal investigation.
Recently, Amazon also introduced Amazon Bazaar as a standalone mobile app in 14 new markets, expanding access to its ultra-low-cost retail offering.
The app is accessible to customers in Argentina, Bahrain, Costa Rica, the Dominican Republic, Ecuador, Hong Kong, Jamaica, Kuwait, Nigeria, Oman, Peru, the Philippines, Qatar and Taiwan, and a broader roll-out is planned.
