12:05 PM EDT, 07/23/2024 (MT Newswires) -- Italy's tax police seized 121 million euros ($131.3 million) from Amazon.com's ( AMZN ) Amazon Italia Transport logistic services subsidiary as part of a probe into alleged tax fraud and illegal labor practices, Reuters reported Tuesday, citing prosecutor documents.

The Milan Prosecutors' Office said Amazon Italia allegedly circumvented labor and tax laws and relied on cooperatives or limited liability companies that supplied workers, according to the report. The company omitted value-added tax duties and lowered social security payments, thereby allowing it to keep the prices of its services competitive in the local market, Reuters reported, citing prosecutors.

"We comply with all applicable laws and regulations where we operate and require companies who work with us to do the same," Amazon ( AMZN ) said in an emailed statement to MT Newswires.

Amazon ( AMZN ) shares rose 2.9% in recent trading Tuesday.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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