A French watchdog has recently ordered Amazon to pay 3.3 million euros ($3.5 million) in penalties for failing to update contractual provisions related to third-party sellers by the deadline set. The DGCCRF consumer fraud watchdog had investigated and determined that Amazon did not comply with the EU's “platform-to-business” rules that were adopted in 2019.
Despite the order, Amazon has appealed the watchdog's decision and penalties. In a written statement, Amazon argued that it had already made changes to meet DGCCRF's demands, but disagreed with the watchdog regarding its findings and penalties. Nevertheless, the company said that it would abide by all orders from French authorities.
Whether or not Amazon wins the appeal, this case highlights the growing tensions between online platforms like Amazon and third-party sellers. Many small businesses are concerned that these platforms wield too much power over their individual success, and they worry that they will be forced to comply with unfair contract terms. As more consumers shift their shopping habits to online retailers, these tensions are only likely to intensify.