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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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.
Electronic books are extremely resource intensive and require a massive amount of well-maintained centralised infrastructure. It's a huge price to pay for the convenience of "being slightly lighter". I have no problem with people choosing to use an e-reader, but it'll be a dark day in civilisation when the written word is only recorded digitally.
What I'm most happy to see here is France understanding that the country is really a geographical area owned by a government on behalf of the people, with various rights and responsibilities assigned to inhabitants in a way which suits the people. I am required to respect private law merely as a result of being born, and there is even better reason to require me to respect public law.
Bullshit.
-Book prices are not higher in France than in the US. Of course, there are all sort of books, with very different prices.
-Prices are not "inflated". They are fixed by the editors, not by the government, not by Amazon. If an editor wants to sell its books, I guess that it must have competitive prices.
Sure, people still read, but they read less serious literature than they used to. The entire West is becoming a post-literary culture. France, with its intelligentsia's concern with protecting high culture, is trying to resist that. Paris bookshops tend to stock genres like poetry and drama which are not making the transition to e-books like mass-market novels.
No, they aren't. If a book is out of print but under copyright (perhaps it is unclear who the rights belong to), it is not being digitized and made widely available to those with e-readers. A huge amount of publications, which would have its audience if it were brought back out of print, is being lost to the digital generation. I participate in the ebook filesharing scene, and for a lot of 20th-century literature, we the community have to undertake the digitization process by ourselves because no publisher wants to deal with the rights situation.
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.
"in cafes and parks here in the US. What is disappearing are paper books."
On one hand, losing the ability to read without a hugh tad of supporting technology may be a problem on itself.
On the other, the problem exposed here is not paper versus electronic books but the risk of Amazon trying to become a de facto monopoly as the dumping practice, if it's true, would suggest.
Do you remember that one of the short list of things a government should do, even on the most liberalist wet dreams, is to put an eye on monopolies, right?
Electronic books are extremely resource intensive and require a massive amount of well-maintained centralised infrastructure. It's a huge price to pay for the convenience of "being slightly lighter".
It is not just slightly lighter, you can hold thousand kilograms worth of books in your pocket. The resource intensive and massive centralized infrastructure is only due to digital restriction management. DRM free book do not have this problem. Essentially, what you are saying is that electronic book are defective by design, but we can fix this and save paper in the process. Don't dismiss new technologies because of a few political glitch.
Whereas an e-book reader should last for centuries.
Tubby or not tubby. Fat is the question
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".
20th-century out-of-print books still under copyright where it is unclear who the rights holder is? If you are reading them on your Nexus, it's because you got them from a filesharing site.
Have you heard about this newfangled institution called a library?
Can I expect to be able to access my collection of e-books in 40 years? I highly doubt that; it's more likely that I'd have to pay multiple times to shift the books from one format to another in order to access them with the e-readers available at that time. The popupar format is epub/mobi today, it's likely to be something else as technology progresses.
Will we witness a planned obsolescence as has happened multiple times with console games? PS1 games can nowadays only be played using an emulator (if you can't find a real PS1 console, that is). The PS1 games people had are naught but frisbees.
You're upside-down on this, aren't you? They already have a free market for books, and your implied criticism is that they don't want it replaced with a monopoly (and a foreign one at that).
And here we arrive at the central contradiction of what you call "free" markets. They will always tend toward monopoly (or collusion among oligopolies, which is essentially the same thing), because monopoly profits are always higher than the sum of profits in a competitive market. It's always worthwhile for the big fish to buy out the little fish, and it's equally worthwhile for the little fish to sell.
Is there a libertarian answer to this? How is an economy of free markets to be preserved when they naturally tend toward monopoly, and the society as a whole is ideologically barred from interfering with that process? Or is economic libertarianism really a crypto-philosophy promoting the interests of those few who benefit from monopoly?
Can I expect to be able to access my collection of e-books in 40 years?
Unless you're foolish enough to lock yourself into DRM, I don't see why not. Nearly 30 years on (well, 28) and Amiga software can be run in emulators from discs that have been format-shifted. And Amiga-specific files can and have easily been converted to new formats. Except for regular old text, because that still works fine. Or HTML, because that still works fine. Or BMP, because that still worms fine.
If a format works and does it's job, it'll stick around after many hardware and software changes. Calibre already makes it trivial to move between epub and mobipocket (and go to and from RTF, PDF, etc) so I don't see you suddenly being unable to read your library even in 40 years.
But prices are higher in France for best-sellers, which is what really matters for most people. Take Plonger, the latest recipient of the Grand Prix du roman de l'Académie française. It's a 448-page hardcover book that retails for EUR19.95. Now take Eleanor Catton's "The Luminaries", which received the 2013 Man Booker Prize. It retails for GBP9.49 in the UK (EUR11.12) or USD16.74 (EUR12.12) in the US. That's almost twice as much, for half the number of pages.
But perhaps the difference is due to them being two different books, and very recent ones.
So you can also compare translations of the same book: let's have a look at 1Q84. In the US, you can get the paperback version for USD13.10 (EUR9.49). In France, you can get it for EUR9.12. So it's about the same price. Except that the French version only has Book 1, and Book 2 and 3 cost the same price. Which means that the book is three times as expensive.
Obviously, you can find other, less popular books that are cheaper in France than abroad. So there's no across the board increase in prices, you're right. However, there are distributive effects that should be taken into account. If niche (read: more intellectually rigorous) books are more affordable, this primarily benefits higher-educated, wealthier consumers. In practice, the French model asks the masses to subsidize the consumption habits of the educated rich.
I've got a 1940's science book in my jacket pocket. Will the Ereader book be usable in 5 years?
I currently have my metric ton of paper books dumped in a storage somewhere I cannot easily reach. Most of them are obsolete textbooks and some are priceless physics and calculus books in a language my children will not be able to read. On a rare occasion I need one of them but it is now too difficult to fetch them at will.
To avoid repeating this situation I only buy ebooks now, and unlike their dead wood counterparts, yes, I will have all of them in 5 years, taking up 0 living space, in a searchable format.
On a side note, I only buy non-DRM or books where I can rip DRM. Don't feel like renting books disguised as buying.
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.
Replying twice because I noticed something else about your post. What appears to have happened is that the new bookshops squeezed out the used book shops in the are you now live. Well, not just the new book shops, it is more of a general trend where popular shops push up rents in some areas, so that only other popular shops can afford to be near them, and in the end every town is just a clone with the same chain stores dominating.
At least there is more than one bookstore near you. In the UK the only major high street book seller is Waterstones now. It sounds like the French are trying to stop Amazon being the only place to buy books, period.
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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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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".
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
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!)
...and part of that relates to how large your corporation is. If you have more money, you can use that money in order to be a bully. It's the capital in capitalism.
The fact that Amazon has "earned" this position doesn't alter the fact that they could be abusing it and harming the overall market.
As a corporation, they are by definition trying to destroy the market. That's what corporations do. That's why capitalism can't be left completely alone. It will implode otherwise. Both it's fans and it's detractors acknowledge this.
A Pirate and a Puritan look the same on a balance sheet.
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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