Econocom is among the IT firms recently named and shamed by a French sanctioning body for missing payment deadlines for its suppliers.
Osiatis, an IT services division of Belgium-based Econocom was handed a €375,000 fine from the DGCCRF (Direction générale de la concurrence, de la consommation et de la répression des frauds) last September for missing invoice payment deadlines from suppliers.
Chinese networking vendor Huawei and services firm HCL Technologies were also disciplined with €375,000 and €185,000 fines respectively.
In 2015, Emmanuel Macron, who was then serving as minister for the economy, industry and digital, introduced new reforms to clamp down on penalties for companies that miss invoice deadlines, claiming that it endangered the survival of many smaller businesses in France.
The DGCCRF monitors more than 2,000 business across France and dished out €17.2m in fines in 2018.
The secretary of state to the minister of economy and finance, Agnès Pannier-Runacher, said the crackdown will prove "essential" to the French economy.
"I would like to acknowledge the work done by the DGCCRF services on the deadlines for payment because it is essential to the proper functioning of our economy. In the spirit of continuous improvement, the PACTE Act (Action Plan for Business Growth and Transformation) being discussed in Parliament will allow more publications of legal announcements of sanctions notified by the DGCCRF and, on the other hand, an increase in the State's advance amounts, from 5 per cent to 20 per cent, in the context of public procurement and which will benefit small businesses and SMEs.
"Finally, because everyone has to sweep front of his door, I want more exemplarity of the public sphere in terms of deadlines of payment. A reflection is under way and should lead in the coming weeks to concrete proposals," she said, translated from the original French.
Econocom filed its full-year 2018 financial results last month, which showed a 26 per cent annual drop in recurring operating profits to €115m, while revenues climbed by eight per cent to €2.85bn.
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