France strikes to defend its e-book trade from Amazon

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PARIS (Reuters) – Sophie Fornairon’s unbiased bookshop has survived the rise of Amazon because of a French regulation that prohibits worth discounting on new books, however she says the e-commerce large’s skill to undercut on transport nonetheless skews the market towards shops like hers.

Fornairon, who owns the Canal Bookstore in central Paris, now hopes that new laws that may set a minimal worth for e-book deliveries will even the competition additional within the battle of neighbourhood shops towards Amazon.

“It is a simply return in the direction of a degree enjoying discipline,” Fornairon, who employs 4 staff, stated. “We’re not liable to closing down any time quickly, however Amazon is a continuing battle”.

Amazon stated the laws, adopted by parliament however not but enacted, would punish these in rural areas who can not simply go to a bookstore and depend on supply.

“Imposing a minimal transport price for books would weigh on the buying energy of customers,” Amazon informed Reuters in an announcement.

That’s an undesirable consequence authorities officers are cautious of at a time President Emmanuel Macron administration is scrambling to move off rising discontent over rising power costs six months from an election.

Within the nation of Victor Hugo and Simone de Beauvoir, the place native bookshops are held with particular affection — they had been deemed ‘important companies’ throughout latter COVID lockdowns — the transfer is the newest by the state to defend nationwide tradition towards large tech companies.

Greater than 20% of the 435 million books bought in France in 2019 had been purchased on-line and the market share of France’s 3,300 unbiased bookstores has been slowly declining due to competitors from on-line retailers like Amazon, Fnac and Leclerc.

Help from Macron helped push the laws, which doesn’t goal Amazon by identify, over the road. The minimal payment nonetheless needs to be negotiated with the regulator.

‘DISTORTED COMPETITION’

French regulation prohibits free e-book deliveries however Amazon has circumvented this by charging a single centime (cent). Native e-book shops sometimes cost about 5-7 euros ($5.82-8.15) for transport a e-book.

Amazon’s pricing technique had resulted within the rising market share of a single operator, the Ministry of Tradition stated.

“This regulation is critical to control the distorted competitors inside on-line e-book gross sales and forestall the inevitable monopoly that can emerge if the established order persists,” the ministry informed Reuters.

Centre-right Senator Laure Darcos, who drafted the regulation, determined upon the minimal supply cost when she noticed how bookstores maintained 70% of their enterprise regardless of being pressured to close throughout early COVID lockdowns, as a result of the federal government reimbursed the transport charges.

“It confirmed what a brake on enterprise the postage prices are for native bookstores,” Darcos stated.

Amazon had lobbied laborious towards the laws, apprehensive the French transfer may set a precedent, the senator stated.

France’s bookstores are concentrated in cities and cities. Amazon stated on-line gross sales of books had enabled customers to have equal entry, no matter the place they lived.

Nearly-free supply allowed e-book lovers in rural areas to purchase books on the similar worth as somebody who may stroll right into a bookstore — exactly the spirit of the 1981 regulation, it stated.

Requested when the laws could be enacted, the Ministry of Tradition declined to offer a date, saying it was too early to say.

For Fornairon, the bookshop proprietor, the regular stream of U.S. vacationers by way of her door had been a continuing reminder of the defend French laws had already wrapped round shops likes hers.

“They are saying to me ‘we did not even know unbiased bookstores nonetheless existed’,” she stated.

($1 = 0.8593 euros)

(Reporting by Elizabeth Pineau, Writing by Richard Lough; Enhancing by Emelia Sithole-Matarise)



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