In Norway, we have the opposite problem: Nearly half of the grades in some subjects at NTNU are Fs, and 40% of all students get an F every year. The institute for IT, maths and electronics implicitly says that "a high failure rate means the standard is high", and they ignore feedback and complaints about professors.
Luckily (if I should put it like that), the grades themselves are usually fair. It's just that some subjects require too much work to be considered as one subject, which seems to be the university's intentions.
This is similar in Germany. Although I always had the it was necessary to remove a certain percentage from students with weed-out courses as entry to Maths, CS and Engineering is mostly free.
But as soon as you are through the weed-out stage (or undergrad) A or B is pretty much the only grade you can get.
Luckily (if I should put it like that), the grades themselves are usually fair. It's just that some subjects require too much work to be considered as one subject, which seems to be the university's intentions.