French regulator fines Amazon unit $35 million for 'excessively intrusive' employee surveillance

A French regulator announced Tuesday it had fined the manager of Amazon's large warehouses in France 32 million euros ($34.7 million) for excessive monitoring of its employees.

The French Data Protection Authority (CNIL) said Amazon France Logistique gave employees scanners in order to record workplace tasks such as removing items from shelves and packing. This data was then used to calculate the "quality, productivity and periods of inactivity of each employee."

CNIL ruled it was "illegal to set up a system measuring work interruptions with such accuracy, potentially requiring employees to justify every break or interruption," it said.

The system for monitoring employee activity was described as "excessively intrusive," including the company's policy of keeping data and statistical indicators on employees for 31 days was also described as "excessive," even in light of the "high performance targets" at the business.

CNIL said Amazon France Logistique committed several breaches of the European Union's General Data Protection Regulation (GDPR), specifically around data minimization and lawful processing.

Amazon told CNBC in a statement: "We strongly disagree with the CNIL's conclusions which are factually incorrect and we reserve the right to file an appeal."

"Warehouse management systems are industry standard and are necessary for ensuring the safety, quality, and efficiency of operations and to track the storage of inventory and processing of packages on time and in line with customer expectations," the company added.