Italian tax police seized approximately €121 million ($131 million) from Amazon's Italian transport company in Milan on Tuesday as part of an investigation into alleged tax evasion and illegal labor practices.

Prosecutors accuse Amazon's logistics services division of using cooperatives or limited liability companies to supply workers, thus avoiding VAT obligations and reducing social security payments to maintain competitive pricing in the Italian market.

Amazon stated that it complies with all applicable laws and regulations and will continue to cooperate with authorities in the investigation.

Sources revealed that the Milan prosecutor's office is also investigating another Amazon business unit for alleged tax evasion. This investigation, unrelated to the previous incident, began in 2021 following a routine check by tax police in northern Milan. The focus of the investigation is on the tax regulations for domestic and international trade goods, particularly VAT and customs duties.

Due to these investigations, Italian tax authorities and the tax police in Monza have reviewed Amazon's accounts in Italy multiple times over the past few years. Despite these legal issues, Amazon's stock price rose by 1.47% on Friday (July 26), reaching $182.50.