France Moves To Protect Independent Booksellers From Amazon
Hugh Pickens DOT Com writes "Tourists often marvel at the number of rich and varied bookstores along Paris streets. Right across from Notre Dame Cathedral is one of the city's most famous independent bookstores, Shakespeare and Company. Inside, every inch of space is crammed with books and readers. The city buys buildings in high-rent districts and tries to keep a core of 300 independent bookstore by offering booksellers leases at an affordable price. 'We have to keep our identity,' says Lynn Cohen-Solal, 'because if we don't, all the shops are exactly the same in Paris, in London, in New York, in New Delhi, everywhere.' Now Eleanor Beardsley reports at NPR that the French government has accused Amazon of trying to push the price of physical books too low and is limiting discounts on books to ensure the survival of its independent booksellers. France's lower house of parliament has unanimously voted to add an amendment to a law from 1981, known in France as the Lang Law which sets the value of new books at fixed prices and only allows retailers to lower books' set price by 5%, in an effort to regulate competition between booksellers and to promote reading. Guillaume Husson, spokesman for the SLF book retailers' union, says Amazon's practice of bundling a 5 percent discount with free delivery amounted to selling books at a loss, which was impossible for traditional book sellers of any size. 'Today, the competition is unfair,' says Husson. 'No other book retailer, whether a small or large book or even a chain, can allow itself to lose that much money,' referring to Amazon's alleged losses on free delivery. Amazon spent $2.8 billion on free shipping worldwide last year to gain a competitive advantage. The bill limiting Amazon's price reductions in France still has to pass the Senate to become law. In a statement, Amazon said any effort to raise the price of books diminishes the cultural choices of French consumers and penalizes both Internet users and small publishers who rely on Internet sales."
This does not fit into Amazons plans to take over the world by selling items at cost (or below cost as is the case with some Music, and I am sure some books).
Just like the French to try and protect literature.
The French seem to not be brainwashed by the propaganda machine enough to harm themselves as pro-WTO trade undermines careers in the global race to the bottom.
When the robots and software start to do significant damage worldwide to jobs (it's only just beginning and some are taking notice) the French will likely be the last holdout.
"Protectionism" is not viewed as bad everywhere; at least the marketing hasn't succeeded everywhere just yet.
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with subsidised leases too?
in cafes and parks here in the US. What is disappearing are paper books. people are reading on tablets, ebook readers, computers, even phones. I'd be concerned if there were some unique paper books that would never be put into electronic form, but even those books are being converted to electronic readable formats. Yeah, there are some antiques that have especially great artwork that loses something in translation to electronic form, but those books are kept in special collections in libraries and rarely open to public viewing/handling.
Meh. Paper books are heavy and take up a lot of space. Good riddance. Protecting paper book sellers is like protecting buggy whip makers when everyone is buying automobiles. How long can you try to hold off progress?
While I don't think that Amazon is the be all and end all of books, big stores like Amazon and Chapters/Indigo (here in Canada) have sure done a lot to bring reading back to the masses. Maybe in a large city there's plenty of market for lots of small independant book stores, but it doesn't work everywhere. I don't even think the small town I grew up in had a real book store. And it had somewhere around 12000-30000 people depending on how the mines were doing. At best we had the popular mass market paperbacks at the pharmacy or news stand. Even in the city, it's nice to go to one store and be able to browse thousands of books from all kinds of genres. The ability to order basically any book you want and have it at your front door in well under a week has helped immensely. They have also helped bring down prices quite a bit. With a bunch of independant book stores, nobody had the clout to push publishers for lower prices, so the price on the cover was basically the price you paid. No it's not uncommon to see hardcover books for less than half their cover price. The price of a paperback hasn't risen that much, even though many items have gone up in price. Looking at old books from the thrift store, I find it kind of interesting that prices have only gone up by a couple of bucks in the past 20 years.
Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
...Congress has passed legislation to protect buggy whip manufacturers from the likes of Ford and Chrysler.
There's also laws in France which prohibit deep discounts on books, so while you do get a million bookstores per square mile, they all essentially have the same inflated prices (no more than 5% discount). This is protectionism to the extreme. I don't really think this will work long term.
hookers and grits.
The French government already has agreements with Amazon to subsidize it each time it creates a new job (between 3400 and 5000 euros per job)...
http://www.huffingtonpost.fr/2012/11/27/amazon-aide-publique-subvention-fisc-impots-france_n_2197220.html
Oh, and Amazon doesn't pay taxes in France, but in Luxemburg, contrary to the bookshops.
Actually, instead of adding yet another layer of regulation that will soon be circumvented, the governement should just:
1) stop subsidizing Amazon (they would open the logistics platform anyway, given their market share).
2) come up with a credible scheme for multinational Internet companies to pay their taxes.
Its about the tourist experience. All of Paris is an anachronism, a big open air museum. Why not the book stores too?
I'm French, and I can tell you this defense of the "paper books" is horrible. In France, e-books are typically MORE expansive than paper versions. How could that be possible? How can you argue that you make literature more accessible by imposing a minimal price?! I'm not a very "the free market will take care of you" kind of guy, but in that instance, it's just the wrong solution to the wrong problem.
When I was young teen I used to ride my bike to a used bookstore and buy cheap used paperbacks for 50 cents. Loved it. As I got older I moved to an area that had only regular bookstores, and the books were 10-50 times more costly. So I couldn't read as much.
Now though with eBay and Amazon I can get cheap books again. So I can afford to read again.
I guess if I want to be able to keep reading I'll have to stay out of France.
Some of France's wealthiest citizens are in retail. François Pinault, estimated net worth of US$15 billion, owns FNAC, one of France's largest booksellers. I imagine that FNAC benefits from the price setting more than most of the small booksellers.
Not allowed there.
---- Booth was a patriot ----
We'll said!
Can operate on several markets, and chose one to work at a loss for years.
In the end, all operators on that "at loss market" will go bankrupt apart from that large company (because it can keep subsidizing that market with the profits of all the other markets it is on).
That will make the company become a de-fact monopolist by the way it uses it's size to steamroll all competitors to oblivium.
And that has nothing to do with "free market".
downloading books for free...
Shoes for Industry. Shoes for the Dead.
Obama can read? Someone needs to give him a copy of the constitution!
People love to selectively pick 'n choose which benefits of free market capitalism they allow themselves to enjoy and which they wag their fingers at with disdain and want eliminated. Problem is, other people may have an exact opposite set of priorities as you and push to have your luxuries eliminated instead. It can't work both ways. This is why free markets have done more to support personal liberties and choice than all the other failed 'personalized' ideologies combined. Don't tell me what I can buy and enjoy and at what price and I'll return the favor to you.
The most free market of all markets is the internet, where anyone can readily access any site, anywhere in the world. (Save a very few totalitarian countries with national firewalls.)
You claim free markets lead to monopoly. Therefore, the most free market system, the internet, has only one web page, correct?
Choice leads to differentiation, my friend. In a free market, I can choose Walmart pants and you can choose Abercrombie. Both serve a section of the market and both thrive. A government controlled market is the market for a driver's license. Government control is monopoly (and the DMV serves it's customers SO well).
In some areas of the US, the government enforces a monopoly on internet access, and you get 5-10 Mbps for $55. In Texas, it's mostly free market and we get Google's gigabit fiber, two cable providers, DSL, wireless, satellite, all kinds of choices.
That's funny. Obama's the lead editor on the new Constitution, I understand.
France has no legal right to pass such laws, under the rules of the EU- rules that OVERRIDE all national Laws, unless said country withdraws from the Treat of Rome.
However, when Tony Blair rose to power, on of the first things he did was to meet with the leaders of senior EU nations, and state that they should, collectively, accept that they were above the EU rules, and ignore them when it suited. He pointed out that this is how the UN works (Britain, France, USA, Russia and China are effectively lawless nations at an International level, because each of the five is SOLE judge as to their own possibility illegality).
The leaders of France, Germany and Italy jumped at Blair's suggestion, and the EU began a VERY different course.
Many sheeple get VERY confused at the adherence of many countries to the EUROPEAN COURT OF HUMAN RIGHTS, being so thick that they thing the ECHR is part of the EU. It is not. Countries sign up to Human Rights Treaties in a completely DISTINCT act from signing to the Treaties of Rome. However, it is a general expectation that EU members are also nations that place themselves in the jurisdiction of the Human Rights court, although Blair is moving heaven and Earth to change this situation. Blair's problem is that even senior legal figures that are Blair's loyalists CANNOT understand how withdrawing from Human Rights courts could be sold to the sheeple.
Meantime, Blair simply advises each nation to ignore their responsibilities, and pass national laws that break the higher rules and laws, DARING those responsible for upholding these International Laws to do anything about it, given that they are ALL political appointees by the member nations, and can be individually ruined if they cause 'trouble' (see that senior French figure falsely accused of rape in NY, to punish and ruin him for not playing ball with France's zionist leadership).
Ireland illegally ignores the conventions that protect the Rights of children and families, and allows the extremely abusive Catholic Church to run ALL schools in Ireland, and directly interfere with the operation of the Irish parliament. France and Italy have passed many Laws intended to directly persecute ordinary, Law abiding Muslims (laws, ironically, that could NEVER be passed in the UK or USA, because English-speaking nations recognise FREEDOM OF CONSCIENCE, whereas, despite the principles of the ECHR, non-English EU nations do not).
The protectionist laws are against the founding principles of the EU. The EU, first and foremost, sets up a unified trading zone, where no nation may act against any partner nation, in such a way that limits that partner more than their own nations, or interferes with free trade principles amongst partners. Price-fixing (in the internal market) is illegal. Blair's acts ensured it might as well be legal.
Blair's tactic was to use the stupidity of the sheeple against them. So politicians price-fix under the "we've got an excuse" mechanism. The 'excuse' doesn't make it lawful, but the sheeple have NO CONCEPT of EU law, only what the mainstream media convinces them seems right and reasonable. So Scotland (which Blair has arranged to TEAR from the Union shortly) fixes the price of booze (the PRICE not the tax, which is a separate issue). France fixes the price of books. And every nasty extremist racist nation that is now being added to the EU is taught, by example, that joining the EU is NOT an act of making nations more civilised and reasonable, but a game of pure power.
The EU is just another war-mongering gang, lawless and murderous like the USA. Blair wants to ensure that the direction he has taken the EU gives the Russian bloc and the China bloc no choice but to fully prepare to carve out their part of the planet with the upmost ruthlessness themselves. The EU is being crafted into a global wartime entity- the very opposite to why it was first founded out of the ashes of WW2.
Amazon will abuse its power once it has attained monopoly status as
a supplier.
I have never once bought anything via Amazon and I never will.
Actually, I'd like to see Jeff Bezos get terminal cancer. He is a despicable
little parasite and the world would be better off without him.
So a bunch of wealthy Parisians get to shop in pretty bookstores, while the rest of France pays inflated prices to Amazon, increasing their profit margins. This is win-win for special interests and the wealthy.
The EU is moving to ensure multinationals pay tax based on where they do business, not where they are incorporated or based. The rule will pretty much be this: If you make money in an EU country you pay a an equivalent proportion of corporation tax in that country, regardless of any clever licensing set ups or tax dodging arrangements you have in place. It's a kind of "no bullshit, referee's word is final" law.
const int one = 65536; (Silvermoon, Texture.cs)
SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
and is prepared to spend to get it.
If it takes me 24 hours to read a book, and I pay full price, let's say 8 euro, that's 33 cents per hour. The price could be doubled and it would still be one of the cheapest pass times around. Your investment of time is always bigger than your cash investment for reading a book, so I reckon most people who complain about high book prices actually need to look at their overall spending. ...and you can sell the book 2nd hand afterward, and you can swap it and get a book for nothing.
George Orwell wrote a good piece about this:
http://theorwellprize.co.uk/george-orwell/by-orwell/essays-and-other-works/books-vs-cigarettes/
Bravo, France!
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The rhetoric of politics can get pretty confusing. Usually, protection means protection from force, trespass and other forms of violation of property rights.
In this case, Amazon did not use any such force against independent booksellers. It is actually those booksellers who are using force against Amazon through government.
So it is more accurate to say that the French government moves to grant French independent booksellers special privileges. Stopping your competitors from doing a better job than you isn't protection, it's aggression.
These comments are mine; I do not speak for my employer.
"Amazon said any effort to raise the price of books diminishes the cultural choices of French consumers and penalizes both Internet users and small publishers who rely on Internet sales."
If Amazon would pay the taxes they should this would not be problem. But since the American government is allowing this illegal behavior, since no management have gone to prison for tax fraud, people, culture and society will suffer.
> Therefore, the most free market system, the internet, has only one web page, correct?
Yes, it's Google. The concept is not about physical availability. It's about perception.
A market captured by a monopoly is not a free market. That is why Standard Oil (88% of the market), etc. Had to be broken up. It has nothing to do with "jealous little creatures".
Fixed price on books apply only to new books. Walk along the Seine and you will find plenty of cheap second-hand books. And it is a lovely promenade.
Yeah, I've noticed it in Cape Town too. Bookstores are closing or downsizing. There are fewer serious books and more "bestsellers", chick-lit, and dumbed-down stuff. I have fond memories of sitting at my stammtisch in my favourite cafe in the 60's reading French paperbacks and cutting the pages as I went. Cutting the pages: a lost experience... Ho hum. Mac
perhaps you can survive in the shadow of those doing your own job better than you. If not... Oh well, see ya.
Apples and oranges, buddy.
Amazon is a distributor. They don't write or publish books. They don't MAKE anything. They're just strong arming the distribution system for short term personal gain without any concern for the larger effects on the eco system around them.
When you impoverish thinkers, writers and publishers, you take away energy from them, make it more difficult for them to have an impact on their world. This in turn makes it easier for the powers that be to control the message, rewarding soap box time only to those who play by the rules.
And as always, the so called, "Free Market" is touted as the noble reason behind this tactic. The Jungle was also free, but until the little monkeys got together to learn how to regulate their environment, they kept getting eaten by tigers.
Fuck tigers, and Fuck Amazon.
I've heard similar suggestions made in New York to San Francisco to here in Austin, which AFIAK has the US's largest remaining independent bookstore.
Let's be honest, though. This isn't about buying books and it certainly isn't about literacy or encouraging reading. It is about the experience of having a culturally 'cool' place to go and drink coffee and browse and hang out.
This is one of the hypocrisies of the left: they want affordable housing for everyone right up until affordable housing means building tract homes in places that might damage the 'character' of their neighborhoods. This may well be the case, but I'm not aware of how to elevate thousands of people to middle class homeownership without having a place to put them, and if you are claiming to be an ally of the working class, you are putting them at arm's length through measures like these that preserve admittedly cool perks for the wealthy urban elite while making it more difficult for your average Jean to buy books because he's not only subsidizing the rich coffee shop yuppie, his discretionary income now only permits him X-n books.
I have a really hard time thinking poorly of Amazon for making books available to everyone at a really low cost. I do feel for the mom-and-pop bookstores, but from a socieital perspective that's a trade-off I'm willing to make. I run a business and if my business became obsolete because of something that had tremendous benefits for everybody, I'd adapt and find a new business. Ain't no guarantees in this world and statism is the tired old answer that always ends the same way.
It has been 170 years since the famous petition to French Parliament to protect candle maker from unfair competition from a certain celestial body. Did they learn nothing? Why prop up an obsolete and failed industry at the expence of taxpayers, consumers and competitors?
Maybe use that money to preserve some outstanding paper book editions? Or poll that money to create a free e-book repository to educate the masses who don't have the resources to pay for books $60 a pop? Today we have the technology to bring literacy and education FOR FREE to every ghetto and remote corner of the world, yet a certain Mikey Mouse character prefers and inifinite copyright, and universal as well (Thanks, WTO!)
That's freaking brilliant. Now I can set up a multinational in the EU that does all its business outside the EU, and not have to pay any tax!
jason bond picks review
it does dairies, drink, baby food and biscuit. You might find that funny, but some of us are quite happy to see some part of our culture, be protected.
Yes, at least until the rest of the world follows suit.
Do you think the minimum wages are low enough so you can compete? Even after tariffs?
If Amazon is winning on price by offering free shipping, why not, instead of price fixing books, make a law requiring anyone who ships a product to pass along the cost of the packaging and the exact amount they are charged by the shipping company. That would limit some of Amazon's advantage unless they invest heavily in France by building their own freight network there.
The mom and pop stores in the USA were killed 30 years ago by National and regional chain stores. Walmarts main competition is target, but also publix,amazon, dollar general,etc,etc. When you compete at all levels you have to compete with everyone including constant new arrivals like Aldi, Winco, etc.
but the problem is it's not the right answer. It's not about brick and motar, it's about there being only 1 company you buy everything from. That's Amazon's long term goal, and they're not shy about pointing it out. It's why they have so many investors even though their profit margin is so bad. The investors are expecting Amazon to drive the competition out, jack up the prices (and their profits) and then there'll be nothing anyone can do about it.
So when you say they should go out of business, that's only true if you completely ignore what the people of France (and people in general) desire and what's in their best interests. That's fine if you're the sort who believes in dog eat dog, winner take all capitalism. For the rest of us we support the regional players anyway.
To put it in terms that fit your world view: it's kinda like what Chairman Mao did with crops: He told everyone to double plant. A bad idea that sounds good on paper, has good gut feeling and 'truthiness'. Instead of double the food you had famine. It's the same thing with Amazon. It sounds good on paper to let the weaker players die out. And on a gut level it seems like the right thing to do. But it blows up in our faces. Instead of a cornucopia of cheap goods you'll be struggling to come up with the money for basic necessities.
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They are using their accumulated wealth to start selling books at discount prices? How, pray tell, do you imagine Amazon got that wealth? They've been selling books at low prices since day one, that's their original business.
> Amazon will abuse its power once it has attained monopoly status as
a supplier.
So you predict that Amazon will have a monopoly , ignoring the fact it isn't possible (some customers prefer a bookstore, so they will always have customers).
You then predict that after Amazon achieves this impossible feat, they could abuse their position.
Based on those two predictions, you wish a horrible death on your fellow man.
You're a vile, twisted person aren't you.
This just in: French government attempts to promote reading by preventing bookstores from going out of business by making books more expensive.
Beginning with the Revolution, France has been at the very forefront of Authoritarian Reactionary Communistic Nazi efforts to secure that some asshole's idea of what is good become mandatory, and of what is bad, prohibited. The problem with the Napoleons, Hitlers, Stalins, Maos, and Pol Pots isn't mass murder, its the intent to fossilize everything and everyone by command.
So France has of course decided to protect yet another vested interest at the expense of freedom, progress, and prosperity. I really think the US Government should think about adding Paris to that Axis of Evil!
This only hurts book buyers in France, If I were French I'd be furious at this naked protectionism at my expense.
If I want quaint bookshops in Paris to thrive I'll frequent them.
French is an official language of Belgium.
Amazon.be would be allowed to do business all over Europe (well, the EEA) and offer free shipping without the forced price fixing.
All this while Amazon.fr complies with the French law.
What are they waiting for?
Obviously funding is a huge part of success. We see the same issue with Wall Mart. Small book sellers need to be aware that if they can not achieve superior funding they certainly had best have some outstanding quality to gain customer support. Companies like Amazon self fund at a certain point and most small sellers can not do that. However it is not a monopoly when others are allowed to gather funds if they can and enter the market as a very well funded entity. France is a bit quirky in their thinking.
What france is doing is illegal according to european laws/agreements. It's state funded bookstores (goverment buys the buildings and leases them for much lower prices as a commercial company can ask, also making a low to prevent free business is also illegal)..
I am French and I have really enjoyed reading almost all comments. I am not a big advocate of free-market, but I agree that in theory it can optimize the distribution and reduce the cost of books in that case. However, at the same time I (and probably many French people) want to keep physical libraries that add some value (guidance, human touch, tourism, whatever...). To me these two things are partly contradictory. In short, I think that generalist libraries are not viable and that bigger enterprises could do the same job better in the end. Back to reality, I agree with many people who pointed out that Amazon was distorting the market. Free-market advocates here probably don't know that Amazon uses tons of tricks to pay less taxes for instance. That's why I agree with the decision of the MPs, we have to do what is necessary to keep our libraries afloat right now. Librarians are valuable and we can't just lose few generations of librarians because of a company trying to build a monopoly. ideally, librarians should specialize more and find a way to monetize their skill that is: metadata. French librarians have lost the battle of mass distribution, but the battle of metadata is not over yet and I think French librarians have right now quite an edge on Amazon (or any other mass supplier).
I like Slashdot, but you guys don't appear to understand business at all. Amazon can't become a monopolist for two reasons:
1. Its products (books, etc.) are fungible. That means everywhere that book is sold, it is the same book, and any middleman can sell it.
2. It doesn't even manufacture them, so it has no real control. Its prices are largely dictated by the actual makers of goods.
Microsoft can be come a monopolist because it owns all the patents for Windows and it manufactures it. Amazon is just a middleman. If they ever increase their profits to monopoly level, you'll just go shop for the same product somewhere else.
Plus all this apex predator talk is bullcrap. Wal-Mart already achieved the same level of retail success, and they are still around, but they hardly took over the world.
Have you never heard the phrase "coming digital dark age"?
I have diskettes which I can't read - because the machine they were written on is obsolete, and slightly broken. Give it 50 years, and no-one will know how to fix it.
Paper books need no hardware.
Also they are not centrally controlled. When Amazon wipes all the Kindle copies of something - what then if there are no paper copies?
We can read a lot of business oriented views on all of this. And, as usual, i think the point is missed by the crypto-religious economical "everything is money" simple views on all of this.
I'm not pretending to have seen the face of god, but i'm just thinking about a little something.
I think the way people are choosing their books is maybe more the point that made a difference. I mean, if people were just able to "buy" books, without any kind of information about the book, about what the author wrote before, the tradition in which he can be included, his mentors or friends, about how it can meet their taste and so on, all libraries could sleep very well. Choosing a book is — i think — depending first on a knowledge in some kind of intellectual ecosystem. After that, for sure, we are studying its price :)
Everyone is speaking about the price. But i think this is not the reason why librairies are, at first, in danger. They are because of avalaible advice and communities, prescriptions by many ways, on the web.
Protecting libraries from blind cultural industrial giant like Amazon can be seen like a way to not let the power of prescription to the big business (you all know how easy it is to manipulate or influence hierarchical presentation of datas on the net). This is maybe more some kind of multipolar influence war on information than basic economic money driven question i think. Or not exclusively
Just an idea. Passing.
Maybe not Austin but Portland, OR:
http://en.wikipedia.org/wiki/Powell%27s_Books
"Powell's headquarters, dubbed Powell's City of Books, claims to be the largest independent new and used bookstore in the world.[6] Powell's City of Books is located in the Pearl District on the edge of downtown and occupies a full city block between NW 10th and 11th Avenues and between W. Burnside and NW Couch Streets. It contains over 68,000 square feet (6,300 m2), about 1.6 acres of retail floor space."
Setting prices is one way to do it, but they could also just offer the difference to the book dealers, i.e. subsidies. If you want the diversity, that's fine, but you don't _have_ to rig the marketplace to do that. It's also better because the benefit of diverse bookstores doesn't accrue only to the bookstore. Other local businesses benefit, so there's no reason not to share the burden through a tax/subsidy. You don't even have to make it governmental. You could just use a cooperative.
Which is great. Like adding a settee to your living room, except bookstores to your city. It sounds like they are doing it backwards though. If I am an amazon customer in France but not in Paris, I want the cheapest price for a book. Why should I subsidize the decorations of the Parisians? You want book stores, make it like Disneyland and just have government owned storefronts to sell books as a facade. It doesn't matter if they turn a profit or not, they are decorations.
You have no free market capitalism; never did. Just as communism was never actually implemented, nether has free market capitalism. All implementations have been far from the ideals and their success is not ever entirely due to their ideology as the FAITHFUL proclaim.
Go get educated so you can constructively discuss issues instead of embarrassing yourself.
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And the sky is not perfectly blue. I don't understand your point.
There is no free market - it's so far from it that to use the term is bordering on being silly. I'm not complaining about 1-2% keeping it from a perfect 100% as you seem to think I am; illustrating the FAITH and ignorance of your perspective. It's far more like 50% making it unreasonable to classify as such.
Hell, the closest you have to an actually free market is the black market - which lacks any regulation or limitations other than having to stay underground - but then by definition it's created by the laws it breaks so within it's own definition it has total freedom.
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