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."

Comments

Re:What possible reason

[cnettel]

What possible reason could France have for this law, besides being successfully bought by big business?

Quite sad really. The notion that it helps small retailers, so business, but not necessarily big business. The publishers and the retail sector can gain from it, while those interested to compete on price and the general public do not, at least not related to their book purchases.

Re:What possible reason

[FireFury03]

What possible reason could France have for this law, besides being successfully bought by big business?

I understand that the law was passed to prevent supermarkets from putting book sellers out of business by selling the most popular books at knock-down prices (the theory being that if all books are sold by the supermarkets rather than proper book stores you would only be able to buy the most profitable books).

European Mindset?

[phobos13013]

I'm trying hard to understand this. Looking at European governmental action, typically these governments act to protect the consumer. I do not immediately see how forcing a higher price on a commodity can be good for the consumer. But then I remember Wal-Mart; look at Wal-Mart by offering lower prices for so many years has hurt local economies, local goods providers who cannot compete with volume pricing... which is exactly what Amazon does as well. They can take a hit on shipping because they probably have cut rate contracts with delivery companies anyway that local French sellers cannot compete with! So, all I can think is that the French government has bothered to look beyond the obvious, oh we save them 8EU so we are obviously better for the consumer and realized that there is more to a healthy economy and healthy society than saving someone a buck or two...

Re:What possible reason

[0123456789]

We had a similar law in the UK until about 10 years ago. Prior to it being repealed, I thought it was absurdly anachronistic. However, since it was repealed, supermarkets have been stocking, and massively discounting, high-profile books (Harry Potter and the like). The downside is that it's become almost impossible to find a small, independent bookshop, and even the large chains are struggling. In response, the large chains are cutting the breadth of their stock, instead stocking more of the high profile titles, and similarly discounting them. The net effect on the consumer? You can get Harry Potter or 2 dozen other titles for £2, but you're screwed if you want something else. I think it's fair to say that most /. readers want to buy books other than John Grisham, Harry Potter, and celeb biography du jour.

Thankfully, Amazon fills the gap. However, browsing a decent, well-stocked book store is a far more pleasant experience than browsing Amazon.

The price of socialism

[theophilosophilus]

The price of socialism is that getting a good deal is a crime. If you aren't paying full price someone isn't getting paid full price. The U.S. was like this once. Under FDR a farmer could get fined for growing wheat for the sole purpose of feeding to his family because, hypothetically, if every farmer did this it would impact the market for wheat. See Wickard v. Filburn. Imagine what this logic would mean if it was applied to technology.