France files supplier contract complaint against Amazon for abuse of dominant position

The French government has filed a complaint with the Paris Commerce Court against e-commerce company Amazon for abusing its dominant position with some suppliers, newspaper Le Parsien said.

The complaint follows a two-year investigation by France’s consumer fraud watchdog, the DGCCRF.The news agency says the Economy Ministry is seeking a fine of €10M (~$11.8M).

“The platform imposes unbalanced relations to its vendors,” DGCCRF official Loic Tanguy is quoted as telling Le Parisien.

Amazon can for instance unilaterally change contract terms or even suspend contracts it has with the more than 10,000 French companies using its platform to sell their goods, the newspaper said.

An Economy Ministry official confirmed a complaint had been filed against Amazon but did not provide further details.

A spokesman for Amazon said the company does not comment on legal procedures.

According to Le Parisien’s report, the complaint focuses on Amazon’s ability to unilaterally change contract terms on the more than 10,000 French companies using its ecommerce platform to sell their goods — or even to suspend contracts entirely.

It’s not the first concern raising in the European Union around Amazon’s business practices. Earlier this year the company was forced to modify its Kindle ebook contracts in the region after an EU antitrust investigation judged it had suppressed competition by imposing unfair terms on publishers which required them to disclose any terms they had agreed with rival publishers.

Tax is another bone of contention between EU governments and the ecommerce giant  — including in France which five years ago demanded Amazon pay $252M in non-reported tax.

This October the EU also ordered Amazon to pay $295M in back taxes, asserting it had been given illegal tax benefits in Luxembourg where its corporate HQ is based.

Multiple EU governments are now pushing for tax reform to respond to where digital platforms generate revenue not just where they book profit to counteract the problem of tax base erosion in individual Member States.

Image Source: Getty Images

by Israt Yasmin, The Blogging Connection

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