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France moves to shield its book industry from Amazon -Breaking

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© Reuters. Sophie Fornairon is the owner of La Librairie du Canal bookstore. She poses for Reuters during a interview in Paris as French legislators vote a draft bill to stop Amazon from free shipping and protect traditi

By Elizabeth Pineau

PARIS (Reuters). Sophie Fornairon, an independent bookshop in Paris has survived Amazon’s rise (NASDAQ:) due to a French law prohibiting price discounts on new books. However she claims that Amazon’s ability for shipping to be cheaper still skews her store against other stores.

Fornairon, the central Paris-based owner of Canal Bookstore hopes that new legislation, which would establish a minimum order price for books, will make it easier to compete with Amazon.

Fornairon who has four employees, stated that “it’s a just returning to a level playing surface.” We are not in danger of being shut down anytime soon but Amazon is an ongoing battle.

Amazon stated that while the legislation was adopted by parliament, it has yet to be enacted. It would penalize rural people who are unable to visit bookstores and have to rely upon delivery.

Amazon said in a statement to Reuters that imposing a shipping fee for books at a minimum would impact the buying power of consumers.

This is a bad outcome that government officials fear at a moment when President Emmanuel Macron’s administration is trying to stem growing discontent about rising energy prices, six months before an election.

Victor Hugo’s country and Simone de Beauvoir’s, in which local bookshops have special affection, was deemed an ‘essential company’ during the COVID lockdowns. The state is protecting national culture from the threat posed by big tech firms.

Online retailers such as Amazon, Fnac, and Leclerc have eroded the market share for France’s 3300 independent bookstores. This is because more than 20% of France’s 435 million book sales in France were made online in 2019.

Macron’s support helped to push this legislation over the finish line. It does not specifically target Amazon. With the regulator, negotiations are still ongoing for the minimum fee.

“DISTORTED COMPETITION”

French law forbids book delivery without charge. Amazon, however, has circumvented the ban by only charging one centime. For shipping books, local book shops charge between 5 and 7 euros (between 5.82 and 8.15).

According to the Ministry of Culture, Amazon’s pricing strategy led to the growth of one operator’s market share.

According to the ministry, “The law was necessary in order to regulate the distorted competition online and stop the inevitable monopoly which will arise if the status quo continues,” Reuters reported.

Centre-right senator Laure darcos, who drafted this law, made the decision to charge a minimum delivery cost after she noticed that bookstores retained 70% of their businesses despite being closed during COVID lockdowns. Because the government paid shipping fees,

Darcos stated, “It demonstrated how limiting the business of local bookstores is postage costs.”

The senator stated that Amazon opposed the bill because it was concerned about precedent setting French moves.

France has many bookstores, but they are mostly located in cities and towns. Amazon stated that Amazon’s online books sales had allowed customers equal access regardless of location.

Book lovers living in rural areas could buy books virtually for free from a bookstore. This was exactly the spirit behind the 1981 law.

When would the legislation be implemented? The Ministry of Culture refused to answer the question, stating that it was too soon to tell.

Fornairon, the proprietor of the bookshop was reminded of French legislation by the stream of tourists who kept coming through her doors.

She said, “They told me that independent bookstores didn’t exist anymore.”

($1 = 0.8593 euros)



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