France to Initiate Legal Action Against Amazon for Alleged Business Law Infractions
In a series of developments, global tech giant Amazon is facing legal scrutiny and potential actions in several countries for its business practices.
In France, the Economy Minister Bruno Le Maire has filed a lawsuit against Amazon, alleging that the company utilized anticompetitive contracting tactics to hinder competition and raise prices in the region. The Directorate General for Competition Policy, Consumer Affairs and Fraud Control (DGCCRF) investigation found that Amazon imposed abusive clauses on its commercial partners, such as the option to modify or terminate contracts unilaterally. The DGCCRF seeks a fine of 10 million euros ($11.8 million) against Amazon, and the French government aims to ensure greater transparency, balance, and loyalty in their relations with companies.
Across the Atlantic, California Attorney General Rob Bonta has filed a lawsuit against Amazon, claiming that the company's actions violate California's Unfair Competition Law and Cartwright Act. The lawsuit, which does not specify the exact nature of Amazon's anticompetitive contracting tactics, alleges that the company massaged graduate employment data and counted low-paying, non-legal temp jobs as part of its graduate employment statistics.
Meanwhile, in the United Kingdom, Amazon is under investigation by the UK's Groceries Code Adjudicator (GCA) for alleged breaches of the Groceries Supply Code of Practice (GSCOP), specifically regarding payment delays to suppliers. The investigation will review Amazon's practices from March 2022 to June 2025.
While there isn't a specific case mentioned regarding unfair commercial relationships with suppliers in the United States, Amazon has been involved in legal actions concerning product safety and liability. For instance, the Consumer Product Safety Commission (CPSC) has designated Amazon as a "distributor" under the Consumer Product Safety Act, which expands its liability for product safety issues.
Amazon has also been actively fighting counterfeit goods on its platform, collaborating with law enforcement and brands internationally. However, this is not directly related to unfair supplier practices.
In the legal battle against educational institutions, more than 73 former students have filed or will file lawsuits against 12 law schools for job statistics fraud. No details have been provided on the specific law schools involved in these lawsuits.
Amazon declined to comment on the judicial proceedings in all the cases mentioned. The company's response to these allegations will be closely watched as they continue to unfold.
In France and California, the governments have filed lawsuits against Amazon, alleging anticompetitive practices in both regions. Specifically, Amazon is accused of using abusive clauses in its contracts with commercial partners in France, and manipulating graduate employment data in California. This suggests questionable financial practices and business conduct in these instances.
