Minister of Economy of France files suit against Amazon for abusive business practices. - CYDIAPLUS.com

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Tuesday, 19 December 2017

Minister of Economy of France files suit against Amazon for abusive business practices.



According to "Le Parisien", the lawsuit against Amazon comes as a result of an investigation by (DGCCRF), the French entity that controls fraud in the business sector.

The legal actions come after an investigation over two years, by the Directorate General of Competition, Consumption and Repression of Frauds ( DGCCRF , for its acronym in English), who is the French entity whose competence is responsible for controlling and regulate fraud at the level of the business sector in the country. Researchers at the DGCCRF determined that Amazon imposed a series of abusive clauses on its business partners in France, including the possibility of changing or rescinding contracts unilaterally, for which reason a lawsuit was filed against Amazon.

In a statement issued on Monday, the DGCCRF said that after investigating several Internet sales platforms and examining the clauses imposed on sellers, the entity considered that the technological giant Amazon , abuses its dominant position in the market by imposing a relationship unbalanced with its vendors, being the most abusive of the more than 10 thousand companies registered in the platform, to the point that, among other abuses of advantage, it is even allowed to change the terms of the contract or even terminate it unilaterally, It can easily lead your sellers and suppliers to bankruptcy.

Le Maire said that through the DGCCRF, he intends to apply a fine to the e-commerce giant, Amazon of US $ 11.8 million, about 10 million euros. He argues that with this precedent, the French government hopes to "better regulate the activity of large digital platforms to ensure transparency, balance and loyalty in the relationships of these large companies with customers in the French country," explained the agency. .

The Ministry of Economy confirmed that a lawsuit was filed against Amazon, but did not provide further details. Similarly, an Amazon spokeswoman said the company does not comment on the procedures on its legal trials, according to Reuters.

This action should be an example to be applied by all countries that must enforce internal laws protecting the users of large Internet companies that take advantage of its magnitude to commit abuses to suppliers and customers.

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