European defence group EADS saw its profits tumble 41 percent in the first half of 2011 to 109 million euros ($156 million) but maintained its positive outlook on surging orders, it said Friday.

"/> European defence group EADS saw its profits tumble 41 percent in the first half of 2011 to 109 million euros ($156 million) but maintained its positive outlook on surging orders, it said Friday.

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BUSINESS

EADS profits nosedive for first half of 2011

European defence group EADS saw its profits tumble 41 percent in the first half of 2011 to 109 million euros ($156 million) but maintained its positive outlook on surging orders, it said Friday.

EADS profits nosedive for first half of 2011
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EADS, owner of plane maker Airbus, attributed the fall in net profits to exchange-rate adjustments and forecast stable operating profits for the whole year and rising sales, it said in an earnings statement.

Airbus logged a series of huge orders for hundreds of its planes at the Paris air show last month, including many for its new relatively fuel-efficient medium-haul A320neo model.

“Our results for the first half of 2011 mirror the strong demand in the commercial aviation sector,” said the chief executive of EADS, Louis Gallois, in the statement.

EADS, which also manufacturers military technology, said its sales in the first half of 2011 were up by eight percent to 21.9 billion euros compared to the same period last year.

Orders surged 89 percent percent to 58.1 billion euros.

“EADS 2011 revenues should be above the 2010 revenues,” the statement said.

BUSINESS

French court hands Amazon €90,000-per-day fine over contracts

French authorities on Wednesday slapped a €90,000-per-day fine on e-commerce giant Amazon until it removes abusive clauses in its contracts with businesses using its platform to sell their goods.

French court hands Amazon €90,000-per-day fine over contracts

The anti-fraud Direction générale de la concurrence, de la consommation et de la répression des fraudes (DGCCRF) service said the online sales giant’s contracts with third-party sellers who use its Amazon.fr website contain “unbalanced” clauses.

“The company Amazon Services Europe did not comply completely with an injunction it was served and it is now subject to a fine of €90,000 per day of delay” in applying the changes, the DGCCRF said in a statement.

It also urged the platform to conform with European rules on equity and transparency for firms using online platforms.

Amazon said the order would harm consumers.

“The changes imposed by the DGCCRF will stop us from effectively protecting consumers and permit bad actors to set excessive prices or spam our clients with commercial offers,” the e-commerce giant said in a statement.

“We will comply with the DGCCRF’s decision but we absolutely do not understand it and we are challenging it in court,” responded the e-commerce giant in a statement.

Amazon said the clauses that the DGCCRF has ordered removed had, for example “prevented the appearance of exorbitant prices for mask and hydroalcoholic gel during the pandemic”.

In 2019, Amazon was fined €4 million for “manifestly unbalanced” contract clauses with third-party sellers on its site in a case brought by the DGCCRF.

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