March 22 (Reuters) - E-commerce giant Amazon.com ( AMZN )

said on Friday it has appealed French regulator CNIL's

decision to fine the company 32 million euros ($34.58 million)

for setting up a system to monitor employee activity and

performance.

The CNIL had in January fined Amazon France Logistique,

which manages Amazon's ( AMZN ) large warehouses in France, for what the

regulator said was an "excessively intrusive" surveillance

system.

"We strongly disagree with the CNIL's conclusions, which are

factually incorrect, and we have filed an appeal before the

Council of State," Amazon ( AMZN ) said in an emailed response to

Reuters.

The CNIL did not immediately respond to a Reuters request

for comment.

($1 = 0.9253 euros)