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Amazon fined 4m euros for unfair market practise
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A French court has fined the US retailing giant Amazon 4 million euros (US$4.4 million) over terms of use deemed unfair for companies using its online marketplace to sell their goods.
鈥淚t鈥檚 a record fine鈥 for a suit involving abusive commercial clauses, said Loic Tanguy, a director at the DGCCRF, France鈥檚 consumer and anti-fraud watchdog.
The agency filed its lawsuit in 2017 after an investigation into third-party vendor platforms found several clauses unfair to the 10,000 small and midsize French companies selling on Amazon.
They gave Amazon the power to modify contracts at a moment鈥檚 notice, demand shorter delivery times or block deliveries while demanding additional corporate information from vendors.
Tanguy said that Amazon was the only online vendor who refused to modify its terms of use after the investigation.
Despite the obvious advantages for companies using Amazon, Tanguy said, the 鈥渁symmetrical balance of power鈥 must not force vendors to accept unfair terms of use.
In its ruling, the court found the contested clauses 鈥渕anifestly unbalanced鈥 and ordered Amazon to change them within six months.
It said Amazon鈥檚 market generated around 60 percent of the company鈥檚 five billion euros of Amazon鈥檚 total French sales.
鈥淭he court ruled on a limited number of clauses, most of which were already updated earlier this year,鈥 Amazon France said.
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