The French government complained to a Paris Commerce Court that e-commerce giant Amazon is mistreating its dominant position with some suppliers, newspaper Le Parsien mentioned on Monday.
However, as far as history is concerned, French President Emmanuel Macron had facilitated Amazon to open its new distribution center in the north of France, but now the retail giant is in a questionable position with the government. Economic Ministerk Bruno Le Maire, says that Amazon is abusing their suppliers with one-sided contract clauses. This leads to a record €10 million fine, “a strong and unprecedented action,” the ministry cited in one of the reports.
Amazon sellers are known for taking accountability for problems like damaged packages, delivery issues, and unsatisfied deadlines, and can be jolted off the site if they don’t fulfill. Amazon has the right to alter seller contracts overnight (by demanding shorter delivery times, for instance), and suspending a seller at any time. “The platform imposes unbalanced relations to its vendors,” said Loic Tanguy, DGCCRF official.
The complaint proceedings, which includes a two-year enquiry by the DGCCRF consumer fraud regulator, includes a fine of 10 million euros ($11.8 million) by the Economy Ministry against Amazon.
Also, Amazon’s French seller forums are now prevalent with stories about delays in account verification and threats to cancel over minor issues. One user cited that a single customer complaint for a delay, which isn’t his liability, incited an intimidating letter. “They treat us like vulgar subordinates,” he penned.
Amazon is contentious in France as the city of Paris criticized that Amazon Prime Now could “destabilize” its economy by disturbing restaurants and grocery stores. However, around the world, they are the most prevalent e-commerce site with 3.5 million daily users.
Amazon has trouble with other European governments for tax issues, having settled with Italy for €100m only today. An Amazon representative stated, “We do not comment on outstanding legal proceedings.”