Italian authorities raided two Amazon sites in Milan and Bergamo on November 24 as part of an investigation into alleged customs and tax fraud involving Chinese imports. Prosecutors suspect Amazon acted as a “Trojan horse,” facilitating the import of Chinese goods into Italy without paying sales taxes or customs duties, potentially costing the state hundreds of millions of euros. The investigation, linked to a broader €1.2 billion tax evasion case, involves the seizure of around 5,000 products and IT equipment, and centers on the use of Amazon’s platform and algorithm to enable non-EU sellers, mainly Chinese, to avoid VAT by obscuring supplier identities.

The probe, led by Milan prosecutors and the Guardia di Finanza, may extend across the entire European Union, with dozens of Italian companies—many believed to be fronts for Chinese entities—implicated. Authorities argue that the scheme constitutes smuggling and breaches EU customs laws. Meanwhile, Amazon maintains it complies with all tax laws and cooperates with authorities. The case adds to ongoing scrutiny of Amazon’s tax practices in Europe, including a separate investigation by the European Public Prosecutor’s Office into the company’s accounts following new EU sales tax regulations.