Tuesday, 25 September, 2018

France to sue Google, Apple over developer contracts

France to Sue Google, Apple Over 'Abusive Trade Practices' - Economy Minister France Will Take Legal Action Against Apple And Google For Using Developers With 'Abusive Commercial Practices'
Kayla Schwartz | 14 March, 2018, 23:52

The French government is taking legal action against Apple and Google over "abusive commercial practices" related to app developers, Bloomberg reports.

Apple and Google face legal action at the Paris commercial court that could result in a fine of Euro 2 million for unfair commercial practices.

Le Maire added he finds unacceptable that both companies can also gather data from the developers and 'unilaterally modify contracts'.

The minister said that sanctions might be applied that would be measured 'in millions of Euros'.

Tech Company Follows Trump's Order, Cancels Hostile Takeover Plans
He said: "This decision is based on the facts and national security sensitivities related to this particular transaction only". Congress issued a critical report on the Chinese tech firm in 2012 that effectively shut it out of the United States market.

The minister also expressed hope that the new taxation rules for the revenues of GAFA (Google, Apple, Facebook, Amazon) that the European Commission is expected to present at the end of March would start being implemented in Europe from the beginning of 2019.

France's consumer fraud watchdog agency DGCCRF confirmed that they were launching an investigation of Google and Apple, according to Reuters. On the one hand the country is courting them to set up operations in the country and on the other hand it is leading efforts at the European Union level to force them to pay more taxes in the countries where they operate, rather than in low-tax countries such as Ireland and Luxembourg where they've based their European subsidiaries.

In 2013, French authorities raided Apple's stores and distributors in France in a probe into the Cupertino tech giant's resale practices.

He accused Google and Apple of imposing tariffs on developers wishing to sell their apps to the internet giants. In December, Le Maire's office filed a complaint against Amazon for allegedly abusing its suppliers with lopsided contract clauses and sought a record EUR10 million fine. The findings of a similar inquiry into Amazon a year ago are being reviewed by a tribunal, his office said.

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