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The Least They Could Do: Amazon Charges 1 Cent To Meet French Free Shipping Ban
Last year, we mentioned that the French government was unhappy with Amazon for offering better prices than the French competition, and strongly limited the amount by which retailers can discount books. Last month, the French parliament also passed a law banning free delivery of books. Ars Technica reports that Amazon has responded with a one-penny shipping rate on the orders that would previously have shipped free. Says the article:
This is by no means the first time France has tried to put a damper on major US tech companies dabbling in books or other reading materials. In 2011, the country updated an old law related to printed books that then allowed publishers to impose set e-book pricing on Apple and others. And in 2012, there was the very public dispute between French lawmakers and Google over the country's desire to see French media outlets paid for having their content pop up in search results. At least for now with this most recent situation, an online giant has found a relatively quick and easy way to regain the upperhand.
This is not at all about the French/US competition, the big French sites like fnac.com are subjected to the same rules of course.
You can think one thing or another about the rules, but they are about the big sites killing off the small local shops.
Shipping is optional? I wasn't aware Amazon permitted the option of driving to their warehouse to pick items up.
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At least for now with this most recent situation, an online giant has found a relatively quick and easy way to regain the upperhand.
Why the assumption that it is good for for-profit companies to find loopholes and avoid the will of democratically elected governments. The French government has made a decision that will have repercussions. If this is followed, books will be more expensive in France, but they wont lose the independent small bookstalls in town high streets that so many other countries will have. It may also inhibit the ability of online companies to start in France. But, guess what, the people can decide. They can lobby for it to be an election issue, ask their representatives which way they vote, etc. If they don't like the law they can get it changed.
Why is it assumed to be better for a private company with a board who the French people ave no influence upon circumvent this decision?
You should never try to protect at an overall cost an established business, however small, cute etc it is. Bookstores have to close. Not all of them, but a lot of them. The ones that actually provide value to the customer will stay due to people actually visiting them. For example I love Amazon, however there is one small local bookstore that provides a great personalized experience and does not gouge prices to which I go first. I see a lot of people not minding a surcharge when they get even more value out of the experience, so this bookstore will servive. Also that small bookstore has found things to bring that Amazon doesn't have etc. Protecting or bailing out failing businesses is always bad for the community as a whole in the long-run. Yes, poor buggy whip makers will be out of jobs in the short term, but we can't all be riding carriages into the future...
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Now as to the price of books, maybe you don't know but french books cost on average less than american ones.
Citation needed.
And considering the US is a much larger market, a free market WHAT does that really tell you ?
It tells me nothing because even if what you claim is true (and you haven't proven that) there is insufficient information to draw conclusions regarding why that might be the case. Could be subsidies, could be exchange rates (the Euro is strong relative to the dollar and a lot of books are published in the US which would make them cheaper in Europe), could be some other structural advantage. No conclusions can be drawn without more information.
The French have a vibrant cultural market.
And yet we see the French constantly having to pass laws to "protect" their culture from the outside. I see McDonalds opening in France but I don't exactly see French bistros dotting the countryside of the US. The French should be justifiably proud of their culture and what it produces but sometimes they forget that sometimes people should decide for themselves what they want their culture to be.
Especially when it comes to books. They love books, they love reading, and they buy a lot of books. Much more on average than americans.
Again, citation needed but their supposed love of books has little to do with whether price supports should be used to subsidize small, inefficient bookstores. If French customers like the experience of browsing in such stores and are willing to pay more for the experience then such stores should have little difficulty surviving because they are not competing on price. But if they ARE competing on price then all this law does is subsidize a business that customers really aren't willing to pay for. Either way price floors are not a good idea.
Imagine a future were only Amazon or Apple can distribute/sell books. It would be a nightmare.
It is also a strawman argument. That is deeply unlikely to ever come to pass. The market will certainly change but change doesn't have to be bad. Right now you have a smallish number of large publishers who control the sale and price of most books. Amazon and others are taking the power and profits from the publishers but as an end consumer I'm simply trading one large oligopoly for another. What we really want is some way for readers to buy directly from authors without any middleman and in theory the internet provides a way to completely circumvent Amazon and publishers altogether when they don't provide extra value.
Amazon's bread and butter is the long tail. I'd be willing to bet more than 1/4 of their revenue is used, older and out of print books. You can buy nearly every ISBN in existence on Amazon.
Everything you claim about Small Bookstores serving the long tail better than Amazon is bullshit.
This is a French jobs protection program, nothing more. In the long run I would be willing to bet it harms more jobs than it protects. Just like most of the French jobs programs where everyone in France pays more for everything to protect jobs.