A complaint has been filed against Amazon, the e-commerce giant, by the French government claiming misuse of a leading position with few of its suppliers, as per La Parisien newspaper’s report.
It seems that the action will follow a 2-year inquiry by the consumer fraud supervisory body of France, the DGCCRF. The Economy Ministry is asking for a penalty of €10 Million (approximately $11.8 Million), as stated by the news agency. Loic Tanguy, the DGCCRF official, said, “The platform impinges disturbed relations to its merchants.”
When tried to reach out the spokesperson for Amazon, he refused to comment, replying via email as, “We don’t comment on unsettled legal happenings.” As per the report of Le Parisien, the grievance emphasizes on the ability of Amazon to unilaterally amend contract terms on the over 10,000 French firms making use of its e-commerce platform to put their goods on sale—or even to defer contracts completely.
It is not the foremost distress arising in the European Union pertaining to the business practices of Amazon. The e-commerce giant, earlier this year, was impelled to amend its Kindle ebook contracts in the province after an EU antitrust inquiry reviewed it had repressed competition by daunting inequitable terms on publishers that asked them to reveal any terms they had accepted with rival publishers.
Another disagreement between the e-commerce giant and EU governments is tax—including in France that 5 Years ago asked Amazon pay $252 Million in the non-reported levy. The EU, this October, also asked Amazon to shell out $295 Million in back taxes, stating it had been given unlawful tax advantages in Luxembourg—where the corporate headquarter is situated.
Numerous EU governments are now thrusting for tax restructuring to act in response to where digital platforms create profits not just where they book gain to offset the issue of tax base erosion in the discrete Member States.