Amazon Loses its Appeal in French Court

Amazon (NASDAQ: AMZN) has lost its appeal to overturn an earlier decision by French courts to restrict sales to essential items only. The decision by French higher courts also backed a ruling that found Amazon had failed to provide workers with sanitary working conditions adequately.

Earlier in April, a lower court in France ruled that Amazon was only allowed to fulfill orders for goods deemed essential by the French government. Under French guidance, essential items include food items, medicine and health products, pet food, and electronic goods. The case was initially brought to court by Sud Solidaires, a French labor union that was initially attempting to close Amazon warehouses altogether in a bid to protect warehouse employees.

The Court of Appeals of Versailles upheld the decision by lower courts but amended the fine stipulated in the original decision. Under the initial ruling, Amazon would have faced a fine of €1 million per order that shipped non-essential items. The decision by the Court of Appeals lowers that amount to €100,000 per order.

Part of the Court of Appeals' decision to uphold the case is a move to hold Amazon responsible for the lack of a sanitary work environment at its warehouses. The initial decision found that workers were exposed to potentially dangerous unsanitary conditions in locations such as bathrooms and locker rooms.

Under the decision, Amazon must make a risk assessment with labor unions. Amazon has previously taken steps to protect workers but did not consult labor unions, which is required in order to do business in France.

Amazon addressed the court decision in a tweet, stating, "We have heard the outcome of our appeal and remain puzzled by the decision. We are currently assessing the implications for our sites as well as for our employees and customers in France."