France's privacy watchdog, the CNIL, has imposed a massive $35 million fine on e-commerce giant Amazon for its monitoring system used in their warehouses. The CNIL found that the system used by Amazon to monitor employee performance was excessively intrusive and breached the privacy standards set by the European Union. Amazon has refuted these claims, stating that its warehouse management systems are industry standard and necessary for ensuring operational efficiency, customer satisfaction, and safety.

The focus of CNIL's investigation was on the use of handheld barcode scanners by Amazon warehouse workers to track packages as they move through the warehouse. These scanners allow Amazon to monitor employees down to the nearest second, which the CNIL argued puts workers under close surveillance and continuous pressure. Amazon's monitoring system was found to measure employee productivity and periods of inactivity with such accuracy that it potentially required employees to justify every break or interruption, a violation of EU privacy rules.

In addition to the fine, the CNIL also chastised Amazon for keeping employee data for longer than necessary, stating that real-time data and weekly statistics were sufficient for their operations. Amazon has stated that they strongly disagree with the CNIL's conclusions and have reserved the right to file an appeal. The situation remains ongoing as Amazon continues to face scrutiny over its monitoring system for warehouse workers.