France fines Amazon $4.4 million over marketplace clauses

The logo of Amazon is seen at their new warehouse during its opening announcement on the outskirts of Mexico City, Mexico July 30, 2019. (Reuters)
Updated 05 September 2019

France fines Amazon $4.4 million over marketplace clauses

  • Online marketplaces like Amazon have been a boon for small and midsize French firms, in particular for finding new export markets

PARIS: A French court has fined the US retailing giant Amazon $4.4 million (€4 million) over terms of use deemed unfair for companies using its online marketplace to sell their goods.
“It’s a record fine” for a suit involving abusive commercial clauses, Loic Tanguy, a director at the DGCCRF, France’s consumer and anti-fraud watchdog, told AFP on Wednesday.
The agency filed its lawsuit in 2017 after a two-year investigation into third-party vendor platforms, which found several clauses potentially unfair to the 10,000 small and midsize French companies selling on Amazon.
They gave Amazon the power to modify contracts at a moment’s notice, demand shorter delivery times or block deliveries while demanding additional corporate information from vendors.
Tanguy said Amazon was the only online vendor who refused to modify its terms of use after the investigation.
Despite the obvious advantages for companies using Amazon, Tanguy said, the “asymmetrical balance of power” must not force vendors to accept unfair terms of use.
In its ruling, first reported by a French online news site Tuesday, the court found the contested clauses “manifestly unbalanced” and ordered Amazon to change them within six months.
It said Amazon’s marketplace generated around 60 percent of the company’s five billion euros of Amazon’s total French sales.
“The court ruled on a limited number of clauses, most of which were already updated earlier this year,” Amazon France told AFP late Tuesday.
Online marketplaces like Amazon have been a boon for small and midsize French firms, in particular for finding new export markets, with their total foreign sales rising to 350 million euros last year, according to the DGCCRF.
“The development of the digital economy is a tremendous opportunity, as long as the big marketplaces respect competition and consumer protection rules,” Finance Minister Bruno Le Maire said Wednesday on Twitter.


Getting more women into leadership positions top priority: CEO

This June 23, 2018 photo, shows a general view of Riyadh, Saudi Arabia. (AP)
Updated 18 January 2020

Getting more women into leadership positions top priority: CEO

  • Saudi Arabia is focusing on the Business 20 (B20), making this one of the key engagement groups. Women in Business will be Saudi Arabia’s signature topic

RIYADH: The boss of one of Saudi Arabia’s biggest banks says that getting more women into leadership positions is a top priority.
Samba CEO Rania Nashar chairs the action council for Women in Business created by the Business Twenty (B20), which is the official G20 dialogue with the business community. It represents the global business community across all G20 member states and all economic sectors.
She said the council was set up to boost women’s particpation not only in business but also in global leadership positions.
During the launch of the B20 in Saudi Arabia this week, Nashar highlighted the under-representation of women in the economy.
“There is a gap of 27 percent between male and female workers; 75 percent of males are part of the labor force while only 48 percent of females are working,” she said.
She said it was important not to just talk about women as workers but as business owners.

FASTFACT

Saudi Arabia will host the 15th G20 Summit in Riyadh on Nov. 21-22, 2020.

“That’s why entrepreneurship is very fundamental to our task force,” she said.  “The majority of the finance development programs have incentives for giving loans to females; however, despite the fact that many large borrowers are females, the amount of loans granted to them is far below what is granted to males,” she added.
Nashar said that two-thirds of female business founders feel that they were not taken seriously by investors when they pitch for investments. They also feel that they are treated differently from their male counterparts.
Saudi Arabia will host the 15th G20 Summit in Riyadh on Nov. 21-22, 2020. The Kingdom is focusing on the Business 20 (B20), making this one of the key engagement groups. Women in Business will be Saudi Arabia’s signature topic.