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Amazon under spotlight with regulators

Amazon has come under fire from regulators in France, with the French Government yesterday filing a complaint about the ecommerce giant for allegedly abusing its dominant position with some suppliers, Reuters reports.

In the complaint, filed with the Paris Commerce Court, the Economy Ministry is reportedly seeking a fine of 10 million euros following a two-year investigation by France’s consumer fraud watchdog the DGCCRF.

It is claimed that Amazon is capable of changing the contract terms or even suspending contracts it has with thousands of French companies.

“The platform imposes unbalanced relations to its vendors,” a DGCCRF spokesperson told French Newspaper La Parisien.

It comes as Australia’s competition watchdog the ACCC keeps a close eye on Amazon’s entry into the Australian market, with chairman Rod Sims having previously said that it will take action to curb any anti-competitive practices.

According to The Australian, Amazon’s Australian chief Rocco Braeuniger has met with Sims to discuss Amazon’s business model and possible competition-related issues that may arise from it.

Established local retailers, including Harvey Norman chairman Gerry Harvey, have previously complained that Amazon would engage in anti-competitive behavior in Australia, citing possible predatory pricing practices.

Sims has also said that the ACCC won’t necessarily protect local retailers from Amazon or the competitive pressures it brings into the market.

“In competitive markets, some firms prosper while others go out of business. This is a harsh reality,” Sims has said.

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