Prosecutors in France have accused the French unit of Ikea of orchestrating a “system of espionage”, illegally snooping on at least 400 people and using the extracted information to their advantage, says a report in the New York Times.

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The Swedish multinational conglomerate that designs and sells ready-to-assemble furniture, kitchen appliances, and home accessories, ran surveillance on employees, applicants, union organizers, and also checked on workers on medical leave.

The incident was first reported in the year 2012 and the alleged spying activities had continued for the past three years, the prosecutors say. Not just that, the French arm of the company also stands accused of hiring a former military operative for more "clandestine operations", says the report. When the case sparked outrage, the company was quick to shake up its management at the unit and fire the chief executive.

Despite the seriousness of these allegations, there's no evidence to corroborate whether similar activities happened in 52 other countries where the home decor giant operates.

While Paméla Tabardel, the deputy public prosecutor of Versailles, levelled allegations of surveilling at least 400 people, Ikea’s lawyer, Emmanuel Daoud, denied any "systemwide surveillance" and demanded the court drop the charges against the firm.

Daoud, instead, said the violations at the unit were carried out by only one person Jean-François Paris, the French unit’s head of risk management. But Paris told the court that his executives were aware of what he was doing and they backed him.

“This was not a personal step, but a system put in place at the request of the management of Ikea,” he said, alleging the company was being cowardly and pinning the blame on him.

The lawyer of Jean-Louis Baillot, the CEO who was fired after the incident was first reported in the media, claims that his client was wrongly dismissed, adding he had no idea about the snooping activity.

But the lawyers representing victims of surveillance say the operation ran along two tracks -- checking background and criminal past (if any) of job candidates and employees without their knowledge and targeting union leaders and members.

According to the report, the available information from emails and receipts shows that Paris handed the legwork to Jean-Pierre Fourès, a former French military operative in Africa, who surveilled hundreds of job applicants, obtaining details from social media and other sources to speed up vetting and hiring as Ikea expanded in France.

Fourès is also believed to have carried out background checks on customers who got involved with Ikea in big refunds, but he claims he never broke any law.

Pamela Tabardel, the deputy public prosecutor of Versailles, has sought a fine of 2 million euros ($2.35 million) against the French arm of Ikea, at least a year of jail term for two former company officials and a private investigator, and fines for some store managers and police officers.

A total of 15 people have been charged and the verdict is scheduled for June 15.