France Passes “Anti-Amazon” Law, Bans Combining Discounts on Books with Free Shipping

7047703331_b0802d0314_h[1]Never one to pass up an opportunity to have a sale, Amazon is known the world over for pushing their prices as low as legally possible but unfortunately for the retailer that limit just got a little tighter in France. Yesterday the French Senate passed a new law which banned online book retailers from combining free shipping with the 5% discount allowed under French law.

Known locally as the "anti-Amazon Law", it expands on France's Lang Law which required booksellers to sell books at the price set by publishers. The 1981 law, which was named for the French culture minister who proposed the law, allows booksellers to discount books as much as 5%. It was intended to protect smaller booksellers from being undersold by bookstore chains and supermarkets, and it worked well until the rise of online booksellers like Fnac, Amazon, and their competition.

Online sellers quickly noticed that the Lang Law allowed them to also offer free shipping, and they have been using that loophole to their competitive advantage. Amazon in particular has been using their HQ in Luxembourg to their advantage, charging a lower VAT as well (this too will be going away in the near future).

With 3,500 bookshops in France, including 800 of which are single, independent booksellers, the anti-Amazon Law is seen as protecting precious national industry.

“As we have just seen again, laws pertaining to the book economy always generate consensus, if not unanimity,” said French Minister of Culture Aurélie Filippetti.  “This is a sign of our deep attachment to books in this nation, and it demonstrates the belief that France builds itself through its past and its future.”

Under the new law, online booksellers will be able to offer either the 5% discount or free shipping. If they choose the 5% they can take the discount off of the combined cost+shipping.

FrenchCulture.org

image by jeroen_bennink

 

 

About Nate Hoffelder (11373 Articles)
Nate Hoffelder is the founder and editor of The Digital Reader: "I've been into reading ebooks since forever, but I only got my first ereader in July 2007. Everything quickly spiraled out of control from there. Before I started this blog in January 2010 I covered ebooks, ebook readers, and digital publishing for about 2 years as a part of MobileRead Forums. It's a great community, and being a member is a joy. But I thought I could make something out of how I covered the news for MobileRead, so I started this blog."

6 Comments on France Passes “Anti-Amazon” Law, Bans Combining Discounts on Books with Free Shipping

  1. So what is to stop online booksellers to offer 5% off the combined cost+shipping, were they set the shipping cost to equal the Euro equivalent of one cent?

  2. So “literature” is safe in France.

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