French Watchdog orders Amazon to pay $3.5 million in Penalties

The French consumer regulator, DGCCRF, has taken action against Amazon.

On Wednesday, the watchdog stated that the e-commerce giant would be required to pay 3.3 million euros ($3.5 million) in penalties for not making changes concerning contractual provisions related to third-party sellers by an earlier deadline set by the organization.

France’s consumer fraud watchdog, DGCCRF, stated that Amazon was ordered to make changes to its website by March 22 to fix imbalances between the marketplace and third-party sellers.

After a month, Amazon finally complied with DGCCRF’s orders on April 28th. The watchdog said that for each day of delay, there would be fines amounting to 90,000 euros.

After an investigation by the DGCCRF, it was concluded that Amazon didn’t follow the “platform-to-business” rules set by the European Union in 2019. These findings led to multiple orders from the agency.

Amazon plans to appeal the penalties given by DGCCRF. It said in a statement-

“The DGCCRF has acknowledged that the changes we implemented in April are consistent with its injunction. However, we continue to disagree with the DGCCRF on its findings, decisions, and related penalty, and are challenging each of them in court.”

Despite the hefty fines, it seems as though Amazon is not too concerned. The company plans to appeal the decision and carry on with business-as-usual.

Only time will tell if Amazon is able to avoid the hefty fines given by the French watchdog. For now, the e-commerce giant will have to wait and see if its appeal is successful.

Stay tuned for further updates on this situation.

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