Slashdot Mirror


French Fine Amazon For Free Shipping

strech writes "Ars Technica reports that France is fining Amazon for offering free shipping on some orders. A French high court ruled in December that the practice violated a law preventing discounting the price of a book more than 5% off of the publisher's recommended price. Amazon has decided to pay the fine, rather than drop free shipping. The fine currently stands at €1,000 per day but is automatically reconsidered after 30 days, after which it could be raised dramatically."

42 of 578 comments (clear)

  1. Discounting the price of a book? by j.sanchez1 · · Score: 4, Insightful

    How the hell does giving free shipping mean that the price of the book is discounted? The book is $7.99 or whatever regardless of the price of shipping, free or not.

    --
    Speedy thing goes in; speedy thing comes out.
    1. Re:Discounting the price of a book? by dpete4552 · · Score: 5, Insightful

      Because the court decided the price of the book was the total cost to the customer after the book cost itself AND ground shipping were taken into account. So if the book is $7.99 and ground shipping is $2, then the total cost to the customer is $9.99. By Amazon not charging the customer that $2 they have, in the eyes of the court, discounted the book by 20%.

      IMO, it sounds like the court went out of their way to find a definition that would allow them to bully an American company in order to protect French book sellers.

      --
      http://www.archive.org/details/ThePowerOfNightmares
    2. Re:Discounting the price of a book? by j.sanchez1 · · Score: 4, Insightful

      But TFA says "list price".

      That law forbids booksellers from offering discounts of more than 5 percent off the list price, and Amazon was found to be exceeding that discount when the free shipping was factored in.

      Wouldn't that mean the cover price on the book itself? I don't see how shipping and/or tax would be included in that.

      --
      Speedy thing goes in; speedy thing comes out.
    3. Re:Discounting the price of a book? by oliderid · · Score: 2, Insightful

      It is even more nasty than that. Books are sold under a fixed retail price in France as far as I know. Practically it means that books "must" cost the same in your supermarket and in your local bookseller. Such a law is aimed at protection small booksellers. (it doesn't mean that I share this point of view...).

      Honestly I don't think they want to bully american companies...This is just an company facing another absurd/bureaucratic european law.

    4. Re:Discounting the price of a book? by jellomizer · · Score: 4, Insightful

      Forgive me for sounding American, But that sounds like a stupid law to me...
      Amazon.com already bought the books so the publisher already has their money and so would the authors. Whatever price they decide to sell them should be up to Amizon. If they want to cut their profits and leave money on the table it is up to them to make that choice. I would guess the law was passed to help the Mom and Pop err um. Mummaire and Pappaire (Yes it is most likely spelt wrong and problably only used in Quebec French) Shops to insure they can compeat with the big guys. But shouldn't the restriction occure between the publisher and retailer to insure that the large company cannot buy bulk orders at a higher discount forcing the company to sell the books at simular prices.

      There are pleanty of non-evil reasons to sell books at a discount, for example some time books are updated or are not popular so they will sell them heaviliy discounted to get them off the inventory. (selling at a loss or break even pricing) Because of Bulk Shipping I bet Amazon Get good rates for shipping. So where it would cost $2 to ship a book it will only cost Amazon $0.50. Thus making this law even more flawed.

      As I said I am sorry if I sound to American, but I tend to beleave in a free market echonomy, with its ups and downs.

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
    5. Re:Discounting the price of a book? by securityfolk · · Score: 2, Insightful

      Ok, then, easy solution is this... Charge the French and Germans for shipping, but don't charge the other countries. Awesome - way to represent your people, France.

    6. Re:Discounting the price of a book? by p0tat03 · · Score: 4, Insightful

      Documentation from Amazon will easily prove claim #1 to be false (there's no way they're selling at a loss), and IMHO only someone out to get the company would claim #2, since shipping is OBVIOUSLY an ancillary service that adds no value to the product besides what consumers ALREADY expect from the sales contract. This is a good example of gross judicial abuse, takes the law where it was never meant to be applied, and amounts to legislating via judiciary.

    7. Re:Discounting the price of a book? by Anonymous Coward · · Score: 1, Insightful

      > If they want to cut their profits and leave money on the table it is up to them to make that choice.

      But doing this usually means that they try to break the market, usually to try to destroy competition.
      I do not know which kind of market you think of, but the kinds I know do not work without competition, and thus there are laws against destroying competition by using unfair advantages (like having a lot of cash to waste).

      > I tend to beleave in a free market echonomy

      That is a rather general statement, and most people who say things like this haven't thought about the details.
      They are only thinking of one specific case where they think it's great, but usually you find something where they don't want a free market after all.
      Many already don't want a free market when it comes to such still rather ordinary stuff like organs, but forbidding bribes might as well be considered hindering a completely free market...

    8. Re:Discounting the price of a book? by dwandy · · Score: 4, Insightful

      Whatever price they decide to sell them should be up to Amizon.
      actually i believe in the Grand Old U. S. of A has anti-dumping and other competition laws. These laws are France's. Yes, they will be different from those in the US, but the intent is the same: keep companies from exerting undue market pressure, which (in theory) causes competition, which (in theory) is better for the consumer.

      The real question for Amazon's lawyers is why they don't relate the "free shipping" to "free parking" at a mall...that *should* wipe out the argument and put it in perspective

      ... but IANALMLAFL (...Much Less A French Lawyer)

      --
      If you think imaginary property and real property are the same, when does your house become public domain?
    9. Re:Discounting the price of a book? by WhiteWolf666 · · Score: 2, Insightful


      That is a rather general statement, and most people who say things like this haven't thought about the details.
      They are only thinking of one specific case where they think it's great, but usually you find something where they don't want a free market after all.
      Many already don't want a free market when it comes to such still rather ordinary stuff like organs, but forbidding bribes might as well be considered hindering a completely free market...


      There's nothing wrong with a trade in organs if you aren't stealing them from someone else.

      There's nothing wrong with bribes in the private sector if you aren't altering laws, or influencing public officials.

      Either way, however, the only "real" consequence of banning these sorts of "free market" activities is a black market. Bribes to public officials are _rampant_ in our society, and there's definitely a world-wide trade in organs, even though 99% of nations have banned economic exchanges for human tissue.

      With bribes, the easiest way to deal with the problem is limit the scope of the government, reducing the incentive and cost/benefit ratio of bribery. With an organ trade, one carefully define the regulatory framework surrounding it. But banning these things outright just forces them underground, making them _far_ more "dirty".

      Hopefully, stem cell research will eliminate the "organ trade", or at least transform it into something legitimate.

      Never underestimate the free market; the only illusion that people like you are operating on is that you can control it through government action. Saying that you will eliminate a "free market" in bribes is really just saying that you're turning lobbyists into shadow figures with envelopes stuff with 100s rather than bank checks that can be monitored.

      --
      WhiteWolf666 an exBush supporter. All you new-school,compassionate,save the children Republicans can rot in hell
    10. Re:Discounting the price of a book? by Trebonius · · Score: 5, Insightful

      The first of your three is the only one that makes any sense, but it's not like our corporations are any less opportunistic.

      Who cares whether they'll allow our words in their language? They're proud of their language, and they have strong ideas of what is and isn't a French word. So? Are we only friends with people who use English words?

      We're going to base our opinion of an entire country on the actions of some teenage hooligans?

    11. Re:Discounting the price of a book? by Harold+Halloway · · Score: 5, Insightful

      OK, I can't let these pass:

      "French companies were involved in illegal oil deals with Saddam - in violation of UN treaties - and was one of the primary reasons the French"
      - Well the US never sold anything to Saddam did they? Like arms for instance when Iran was considered a much greater threat?

      "The French are adamantly opposed to allowing any "English" words to become used in French conversation and thus insist on creating 'proper' French words to avoid the inclusion of non-French words into daily use"
      - This depends on who you mean by 'the French'. I didn't RTFA but it's likely to be another pronouncement by L'Academie Francaise whose job it is (surprise surprise) to protect and promote the French language. Not exactly Kristallnacht, is it?

      "Thousands and thousands of non-French servicemen gave their lives to help France fight for it's independence after being quickly taken over by the Nazis - when the latest war started in Iraq, how did young French people show their "support" for all of those dead servicemen? By painting swastikas on their tombs and overturning their headstones."
      - Yes and thousands and thousands of French servicemen gave their lives fighting the Nazis in WWII and the Germans in WWI. Many thousands, including women and children also perished in the underground resistance during WWII. Don't tar the whole country on the basis of a few disaffected pseudo-Nazi youths. Fer chrissakes, they paint swastikas on graves in Israel. It proves nothing. And please remember that the French were there in both wars from the start - they didn't saunter in reluctantly after a few years and claim all the credit, unlike a certain North American country I can think of.

      I'll tell you why the Americans hate the French - it's because the French have history and culture, philosophy and art. They have a cuisine which is based on rather more than saturated fat and corn syrup. They don't roll over and beg whenever the US clicks its colonial fingers (how I wish the UK were the same). And the French themselves are attractive, intelligent, reliable, honourable people. That's why the Americans hate them.

    12. Re:Discounting the price of a book? by Lord+Ender · · Score: 5, Insightful

      Anyone who understands economics is anti-French, including the French economists I know. This is just one more example of the corrupt French laws that hurt the consumers, businesses, and economy of France. There is a reason the French economy is so far behind the rest of Western Europe.

      The entirety of French economic policy falsely assumes wealth is a zero-sum game while completely overlooking the fact that the wealthy will flee if their tax burden is high compared to the rest of the developed world.

      --
      A slashdotter who didn't build his own computer is like a Jedi who didn't build his own lightsaber.
    13. Re:Discounting the price of a book? by robot_love · · Score: 2, Insightful

      "Thousands and thousands of non-French servicemen gave their lives to help France fight for it's independence after being quickly taken over by the Nazis - when the latest war started in Iraq, how did young French people show their "support" for all of those dead servicemen? By painting swastikas on their tombs and overturning their headstones." - Yes and thousands and thousands of French servicemen gave their lives fighting the Nazis in WWII and the Germans in WWI. Many thousands, including women and children also perished in the underground resistance during WWII.


      I'd like to just strengthen this point a little more. In both World Wars the Americans were years late to the party. Tens of thousands of French died in WWI before any Americans set foot in Europe. America has a long history of isolationism which waives her right to condemn any other country's reluctance to go to war.

      As an aside, where does this stereotype come from that the French always surrender? In the early 1800's the French army was the terror of Europe. In WWI they did not surrender, even with 5,000,000 casualties. There were 10 Frenchmen killed for every American. In WWII they surrendered, but they were facing a war-machine that was very different than any that had been seen before. They were simply unfortunate enough to be next to the main aggressor in that conflict. No other nation in their situation would have done better. Are the French wimps? I think not. This myth is propogated in America and it's demonstrably ridiculous.
      --
      .there is enough of everything for everyone.
    14. Re:Discounting the price of a book? by Skynyrd · · Score: 2, Insightful

      I've always wondered why Americans (I assume you're American) are so anti-French, especially when they helped you get independence from Britain etc, right? (Correct my poor history knowledge)

      Because I went there, and was treated like shit. I spent 8 1/2 months traveling in Europe, and spent a good deal of time in many different cities and countries. I always did my best to learn some of the local language, customs, food, etc. I was treated well almost everywhere I went - except France. They were rude at almost every opportunity. The East German border guards were far more friendly than many of the French I had contact with.

      I don't give a damn about their position on the Iraq war, nor how many times we've helped each other out, or how often they surrender.

      They go out of their way to be a rude pain in the ass; they're the Sony of European countries.

    15. Re:Discounting the price of a book? by Harold+Halloway · · Score: 2, Insightful

      France was an occupied country for most of WWII. It had been defeated early in the war due to vastly superior German forces overwhelming a vastly inferior French army trying to defend an indefensible border. I don't defend the Vichy Regime and the actions of Petain and others, but I think you need to acquaint yourself with some facts, particularly regarding the Resistance before you go casting around smart little quotes you found in some third-grade 'show-and-tell' book.

    16. Re:Discounting the price of a book? by fabs64 · · Score: 3, Insightful

      Hardly seems relevant, I can just as easily talk about concentration of wealth, percentages of people living below the poverty line, or life-expectancy in america and call free market economics a failure.

      But that would make me look like an idiot wouldn't it.

  2. Sarkozy may have a point by elrous0 · · Score: 4, Insightful

    Isn't this exactly the kind of nonsense that Nicolas Sarkozy wants to put an end to? Fining a business for doing something that BENEFITS consumers just because of pressure from some lazy brick-and-mortars (who would rather hide behind their union and the laws they've forced through than innovate and compete) seems insane.

    --
    SJW: Someone who has run out of real oppression, and has to fake it.
    1. Re:Sarkozy may have a point by msuarezalvarez · · Score: 2, Insightful

      Well, the well-being of a whole economy is a bit more complicated that the simple lowering of the prices of some goods. This is quite basic, and has been analyzed to death a few thousand times. For example, see the book by Adam Smith (you just have to get past the part where the nice imagery about the invisible hand is used and gointo the actual analysis)

  3. Re:What possible reason by elefantstn · · Score: 4, Insightful

    I'm not sure how to take seriously someone who says in 2008 that you're screwed if you want a non-bestselling book. We live in a time of unprecedented availability of books (and music, and movies, etc.). Truly screwed was when you went to the cozy little independent bookshop and they didn't have your book. Then you backordered it for six weeks.

    This is paradise for book-buying, regardless of whatever romanticized ideal of the independent bookseller you cling to.

    --
    If it ain't broke, you need more software.
  4. Because smarter people pick up the tab. by FatSean · · Score: 4, Insightful

    When the retards who only see the cost of their purchase in dollars destroy their local economy, they will go crying to goverment for help. Those of us who knew better will have to bail them out. Better to prevent the fools from dragging us all down. This is the same logic used for gun control, drug laws, seatbelt laws, child protection laws, etc...

    --
    Blar.
  5. Actually, the real beef... by raehl · · Score: 5, Insightful

    Is that France has a pile of protectionist laws screwing up their economy and this is just one of them.

    Amazon isn't selling at a loss. They're just selling at a price that some stores don't want to compete with. And French law, instead of giving the consumer the right to buy where they can get something the cheapest, instead forces the consumer to pay more for a product than they need to.

    You'd think it was pretty silly if the US had a federal law that said that you could only sell a product for no less than 5% of MSRP, wouldn't you? And you'd think it was ESPECIALLY silly if that law only applied to particular products?

    Well, except agriculture, but there we just write checks to producers.

    1. Re:Actually, the real beef... by DrEldarion · · Score: 2, Insightful

      but finding something which is not mainstream is rather hard, especially outside the big cities. It's a good thing we can get those books on Amazon.
    2. Re:Actually, the real beef... by cfulmer · · Score: 4, Insightful

      Beg pardon? Amazon is, after all, the world's biggest bookstore. You're much more likely to find something out-of-the-mainstream at Amazon than you are at your local bookstore. Heck, if that weren't the case, people who want out-of-the-mainstream books would continue to shop at the local bookstores, who would not be threatened by Amazon at all.

      The only "culture" at risk here is the culture of inefficient small bookstores.

    3. Re:Actually, the real beef... by CheshireCatCO · · Score: 2, Insightful

      Actually, that is counter to my experience. I've had much better luck going through my local independent bookstore (which is part of a nation-wide network of small bookstores) than going through Amazon for unusual books. There are a lot of book on the shelves of the small sellers, books that the big retailers won't touch. Any specific one of them may be statistically unlikely to have a rare book you want, but if you tap all of them at once, you're bound to get it. (If you don't want to go through your local bookstore, try www.abebooks.com.)

      And don't forget that just because Amazon claims to have an item, it doesn't mean that they do. (I've been strung along with claims that they're about to get a book in for weeks on several occasions. I've never been lied to by my local bookstore.)

    4. Re:Actually, the real beef... by mgblst · · Score: 2, Insightful

      The worlds biggest bookstore doesn't refer to how many different books it has, more that it sells more than any other book store. You logic is also faulty. There are specialist book stores, and second hand bookstores who have books that haven't been in print for 50 years. You won't find those on Amazon.

  6. Re:European Mindset? by msuarezalvarez · · Score: 3, Insightful

    Much as refusing to take vaccines...

  7. My country, my rules by CustomDesigned · · Score: 3, Insightful
    I have a hard time getting excited about this. In the email world, the saying goes, "My server, my rules." Every organization has their own policies on how to deal with spam and bend the rfc2821 rules in different ways. They won't accept your mail because they don't like certain (perfectly legal) characters in the MAIL FROM (like '+')? You can either cross them off your list or make special exceptions when sending them mail.

    In the same vein, this is not a fundamental justice issue. France determines the rules to trade in their country. If you don't like them, you don't have to trade there. Or, you can program in special exceptions (no free shipping) for French customers. We can argue about whether their rules are stupid or not (rejecting email based on legal MAIL FROM chars is stupid). But this isn't a case of oppression or murder.

  8. Great Idea by kylant · · Score: 2, Insightful

    Adding the price of shipping to the book and prohibiting discounts is a funny idea. Let's see: If you have to add the price of shipping to a book sold by an online seller you have to add other costs as well, e.g. the costs of your book shop. So if you are selling a book for the standard price and your bookshop is nicer than the one across the street you are giving an illegal discount. The same would be true if your bookshop has more employees or better qualified employees than the average bookshop. We should therefore call for legislation defining the "standard bookshop" - just to make sure there isn't any evil competition at all.

  9. Re:What possible reason by antifoidulus · · Score: 4, Insightful

    Amazon et. al are great when you know exactly what you are looking for. But(way back when anyway) small independent bookstores are(were?) usually run by book nuts who really got a chance to know you and could be counted on to discuss books you have read/like/might like. Amazon's suggestion software is good, but not a perfect replacement. Not to mention some people enjoy the atmosphere of just wandering through rows and rows of books looking for a treasure.

    It's still probably not worth erecting such stubborn laws to protect, but there is something to be said about the atmosphere of a small book store.

  10. Re:European Mindset? by pubjames · · Score: 3, Insightful

    But then I remember Wal-Mart

    You've hit the nail on the head. But this problem is potentially much worse in many European countries. Why? Because they are considerably smaller markets than the USA. For instance, if you are a publisher of obscure books in the USA, you have a huge market - enough to support your company producing obscure books. But in much smaller countries, it is much harder, so these type of law are essentially there so the smaller publishers and booksellers don't get wiped out.

    What works well in the USA won't necessarily work well in other countries where the business environment is very different, and as you point out, sometimes their are bigger issues than saving the customer a dollar (or euro).

  11. Re:What possible reason by elefantstn · · Score: 5, Insightful

    Yeah, visit Amazon.com (or .fr) and just look around. Nothing but high-volume items to be seen! And certainly no way to find out-of-print used books, either. Truly, the only winner is Jeff Bezos.

    --
    If it ain't broke, you need more software.
  12. The same issue as always by houghi · · Score: 4, Insightful

    If you want to do business in a country, you follow the laws by that country. How hard is that to understand?

    If you do not want to do that, you do not do business in that country.

    Wether this is an American company in France, A Belgian company in Spain or a Russian one in the USofA.

    I am sure that I will be fined selling alcohol to people under the age of 21 in the USofA, no matter what my opinion is of that law, or the fact that the country of my headoffice allows this. I am sure both Heineken and InBev would agree.

    --
    Don't fight for your country, if your country does not fight for you.
    1. Re:The same issue as always by Alaska+Jack · · Score: 2, Insightful

      Huh? No one is disputing that the French have the *right* to do this. What's being disputed is their judgment in actually *doing* it.

            - Alaska Jack

  13. This isn't protectionism. by an.echte.trilingue · · Score: 2, Insightful

    The law is not protectionist. Protectionism means that you do not allow foreign goods onto a local market. Since a French company, Alapage got in trouble for doing the same thing, you cannot classify this as protectionism.

    And the agricultural policy is not French, it is a competence of the EU. The US does the same thing with its farm subsidies. Make no mistake, without regulation, the free market does not magically make agricultural production better, it impoverishes farmers and leads to huge fluctuations in prices and chronic shortages. The EU and the US (two of the world's most free-market oriented organizations) have subsidies for farmers because history has proven their necessity over and over.

    By the way, the anti-dumping laws (this means selling products below price) in French laws are a result of the transposition of EU directives into national laws. Such directives exist to ensure the free market can prosper and they are the same across Europe. Given the nature of the European economy right now (hint: it's really good compared to everybody else), such initiatives must be doing something right.

    --
    weirdest thing I ever saw: scientology advertising on slashdot.
    1. Re:This isn't protectionism. by TobascoKid · · Score: 2, Insightful

      And the agricultural policy is not French, it is a competence of the EU.

      But it's the French who block any major changes to CAP, because it so strongly benefits French farmers at the expense of other European citizens.

      --
      At some point, somewhere, the entire internet will be found to be illegal.
  14. Re:What possible reason by Blakey+Rat · · Score: 3, Insightful

    Well, it's impossible for any real-life bookstore to compete with the fantasy one you've created in your mind using vast amounts of nostalgia, so I suppose that's probably true.

    Being a person who is grounded in reality, when I go into the local Barnes and Noble and see books as far as the eye can see, with a coffeeshop off to my left, a high school kid playing cello music to my right past the checkers, and in the back a kid's section with a local school teacher reading children's books (and then I learn that for every book bought that day, Barnes and Noble is donating books to the local elementary schools)... well, I'll take that over any fantasy nostalgia bookstore you've come up with. Because, you know, it actually exists.

  15. Re:What possible reason by Bytal · · Score: 2, Insightful

    Obviously, not enough people are willing to pay extra to browse in such an "atmosphere". Otherwise, these small bookshops would be thriving. However, plenty of people are willing to subsidize these little bookshops using other people's money, by making sure that all the consumers have to pay high prices.

  16. Re:What possible reason by FireFury03 · · Score: 2, Insightful

    Dieu merci! Now the French are safely protected from the limited selection of Amazon.com.

    You might notice that the law was passed before the likes of Amazon existed. As with all laws, people with a vested interest will often use them in ways not envisaged at the time the law was passed, which may be contrary to the law's original intent. It doesn't necessarily mean the original idea was a bad one, it just means that the law needs to be adjusted to prevent this kind of abuse.

  17. Re:What possible reason by zippthorne · · Score: 2, Insightful

    And if that was valued by society, those small, independent bookstores run by book nuts would still be around. But it isn't, which is why people are doing what they always did: buy books that they hear about from adverts or their friends. You don't need a book nut to do that, you just need a place to buy what you want for the best price you can find.

    Now, there probably is something to be said for that atmosphere, but not in every town like you posit once existed. That's the kind of thing that goes in where there are lots of people that are interested in that sort of thing. Like near colleges in a large metropolitan area. And, indeed, there is no shortage of such shops in Cambridge (MA, I don't know about the real Cambridge, but I can't think of a reason it'd be different.)

    Interestingly, the French law does appear to greatly impact one class of typically very cash-strapped people: College students. I shudder to imagine how ripped off those who are forbidden from seeking better prices than you'd get in the college bookstore are.

    --
    Can you be Even More Awesome?!
  18. Re:No discussion of Amazon's actions by anaesthetica · · Score: 2, Insightful

    Amazon is engaging in civil disobedience on behalf of their customers--the customers certainly like it, so it cannot be that all French are against free shipping. I don't think anyone on Slashdot has a problem with breaking what they view as an unjust law. In fact, most of us break several laws every day, most of which we view as unjust and therefore without moral force.

    France: Liberty, Equality, Fraternity, No Free Shipping.

  19. Re:[citation needed] by marnues · · Score: 2, Insightful

    In the US 8% unemployment is pretty severe, but in some economies 8% unemployment isn't necessarily terrible. I don't actually know as I have little understanding of the french economy outside of my american brethren slamming the more worker-oriented laws. Given the US economy, yes these laws would be terrible, but please put them and the 8% unemployment rate into proper context BEFORE you say there is severe economic failure. Cause frankly, I don't believe you. France seems to be chugging along just as well as we are.