09:51 AM EST, 02/14/2025 (MT Newswires) -- Amazon ( AMZN ) and three of its executives are under investigation by Italian prosecutors over an alleged tax evasion worth 1.2 billion euros ($1.26 billion), Italian media reports said Friday.

Milan prosecutors and tax police have placed Amazon's ( AMZN ) Luxembourg-based European unit and three managers under investigation for suspected tax fraud in Italian online sales from 2019 to 2021, the reports said. Amazon's ( AMZN ) total liability could reportedly rise to about 3 billion euros when penalties and interest are included.

The online retailer's algorithm allows non-EU sellers to list products in Italy without revealing their identities, making it easier for them to avoid Italian value-added tax, Italian daily Corriere della Sera said.

Under Italian law, any intermediary that enables goods to be sold in Italy is jointly liable if non-EU sellers fail to pay VAT, according to the reports. The investigation reportedly began in 2021 following routine tax checks near Milan.

Amazon ( AMZN ) did not immediately respond to a request for comment from MT Newswires.

AMZN shares were 0.7% lower in early trading.

Price: 228.87, Change: -1.50, Percent Change: -0.65