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Exclusive-Amazon offered France deal to have bill protecting bookshops pulled -Breaking

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© Reuters. Amazon logo seen at Bretigny-sur-Orge company logistics center, near Paris France, December 7, 2021. REUTERS/Gonzalo Fuentes

By Elizabeth Pineau

PARIS (Reuters: Amazon) suggested raising French book delivery costs to 2 euros, from nearly nothing, if Parliament passed a bill making it harder for Amazon to compete with local bookshops. A French senator spoke to Reuters.

Senator Laure darcos claimed that Amazon suggested a minimum delivery cost of 1.80-2.00 Euros ($2.03-$2.25) after its vice president, David Naggar (Kindle Content), met Roselyne Bachelot, Culture Minister in Paris, Aug. 25, 2010.

Darcos stated to Reuters that they were willing to raise shipping costs from 1.80-2.00 euro to match premium subscription costs. However, Darcos insisted that he withdraw his bill to ensure that bookstores did not get the increased costs.

Details of the proposal have never been published. It was part of an extensive lobbying effort by Amazon and five other legislators to repeal the bill.

Amazon refused to confirm that the meeting had taken place. Amazon refused to answer questions about what had been said during the meeting on Aug. 25, 2010.

France is a country where Victor Hugo, Simone de Beauvoir and Simone de Beauvoir are fondly associated with independent bookshops. They are now under increasing pressure from Amazon, Fnac, Leclerc and other online retailers, who are threatening their market share. In 2019, there were 435,000,000 books in France. More than 20% went online.

With the goal of levelling playing fields for independent bookstores, the bill would establish a minimum shipping price in France.

France bans free delivery of books. Amazon currently charges only one centime for books, compared to 5-7 euro ($5.82-8.15) in local bookstores.

Darcos was absent from the August 25 meeting, but an official briefed him.

Second lawmaker, who was briefed firsthand by an individual with knowledge of the meeting, confirmed the existence of a proposal for 2 euros. According to a third source, the proposal was in the region of 2 euros.

Bachelot’s Office confirmed that the meeting took place with Naggar, based in Seattle. However, they declined to comment.

HIGHER PRICE

Darcos stated that Yohann Benard was the Amazon public affairs director for south Europe and she had made the same proposal to Darcos.

She stated that Amazon was worried about the precedent set by the French law, which doesn’t name Amazon. Amazon declined to comment.

Macron’s government has refused to compromise. The bill is due to be approved by Parliament on Dec. 19. A minimum shipping cost for books will then need to be agreed upon with the regulator.

Amazon asserts that this legislation will increase the cost of books for French consumers. This is especially true for rural customers who live far away from any bookstore.

A spokesperson for Amazon stated that more than 40% of Amazon’s book deliveries to France were made via postal codes, without the use of a bookstore. According to the Amazon spokesperson, a raised shipping fee could cost French consumers 250 million Euros per year.

Officials from Amazon stated that the law will only boost Amazon’s margins. They told the second lawmaker, aware of the meeting on Aug. 25, company officials. She requested anonymity as Amazon’s operations are sensitive in her constituency.

The lawmaker also stated that Amazon had suggested a price floor to be applied for the period from April 2022 until France’s next president.

Amazon didn’t comment.

Reuters was previously informed by the Ministry of Culture that Amazon’s pricing strategy resulted only in one operator gaining a larger market share.

French bookshop owners often attribute their success to the 1981 law prohibiting price discounts on new books.

($1 = 0.8882 euros)

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