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Amazon defies French court

Pays a thousand euros per day
Fri Jan 18 2008, 17:28

US BASED retailer of mail-order books and music, Amazon has decided to pay out fines of €1,000 per day in defiance of a French court ruling while it appeals.

The Versailles Tribunal de Grande Instance upheld a lower court's decision won by the French Boooksellers' Union back in December, which found that Amazon had violated France's 1981 Lang law. That law prohibits book merchants from selling books at less than 5 per cent discount off the publisher's retail list price.

The French court found that Amazon's practice of offering free shipping on all orders over €20 effectively violated that provision. It awarded the booksellers' union it's alleged costs and damages of €100,000 against Amazon and imposed an additional fine of €1,000 per day should Amazon continue the free shipping.

Amazon can continue to pay the fine for 30 days, after which time the court will review the fine and may extend, reduce or raise it. Most observers are opining that Amazon's continuing intransigence in the face of the French court's ruling will be likely to draw an increased daily fine.

"As unbelievable as it appears, the free delivery of Amazon.fr is threatened," Amazon's founder and CEO Jeff Bezos said in an email to its French customers. He vowed to appeal and complained, "France would be the only country in the world where the free delivery practiced by Amazon would be declared illegal."

Amazon will probably lose this one, we reckon, but it should be fun to watch. µ

L'INQ
International Herald Tribune

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Comments
Commerce: not for judges

Sounds like Amazon should concentrate their sales in a less hostile country. There's plenty of places out there that would enjoy getting their things at a discount, without a government telling it's citizens who is and isn't worthy of their hard-earned dollar (or Euro).

posted by : A French Canadian American, 22 January 2008 Complain about this comment
a culture of laziness and entitlement

You mean like the Couch Potato civilization that invented Extreme Obesity, remote-control anything and driving anywhere that is farther than a few feet ?
I don't think France has half as many obese people than California does, let alone the whole USA.
And as for the sense of entitlement, let me laugh. France is not the one who started a war for oil.
Of course, they'd have to have an actual army to start a war in the first place.

posted by : Pascal Monett, 22 January 2008 Complain about this comment
Which is Which

I don't get it. If I buy shipping, it's the same as buying a book? I understand that a book (a good) can not be marked down 5% from its MSRP, but what does that have to do with free shipping (a service)? Could a local book store be unjustly competitive since a person could walk in and not have to pay for shipping? 

So Europerson1 goes into localstore1 pays > €20 and leaves it's good. If Europerson2 goes into Amazon and pays > €20 doesn't pay shipping, it's bad. Double standard?

Cheers

posted by : Sengoku13, 22 January 2008 Complain about this comment
French are right

"@Silly Amerians
Yeah, let them sell books under the cost till the competition go belly up and then finaly have monopoly, let them dictate which books are published and sell those with 200% profit.
It's the oldest scam in the business world and pretty much every country has laws against it. It's just that


Oh, and who pays for unemployment benefits(even ultra liberal US have those, so don't start with anti-socialist rant), retraining costs and medicare of all those booksellers that had to close down because Amazon used money from US market to finish them off?
Well, every French taxpayer.


Amazon is trying to screw the French threefold:

1. Instituting corporate run censorship and forcing authors and publishers to write certain type of books. You already have this in your precious US, with commercial networks cutting out poem that is taught in schools.
2. Rip off everyone by offering grossly overpriced products in the longer run. You know, amazon doesn't offer free delivery because it likes you so much, it does it because they already calculated that they will get even in the future.
3. Dumping the costs of transforming an entire industry to their liking on taxpayers."

I agree - got to see wats hidden behind an obviously glamorous offer. It may not be that glamourous in the long run. 

Free shipping and later on controlling the market is not good. French are right.

And definitely, Amazon does not ship free because it likes you!! its all money, mate!

posted by : thx 1138, 22 January 2008 Complain about this comment
@@Silly Amerians

If you didn't have such laws in the first place, then everyone (not just Amazon) will be able to charge what they want and not get punished for it.

Are you seriously suggesting that the book making business is a monopoly Anyone can make and distribute a book. Now, if Amazon is selling books at a loss in order to gain market share or control what the French read (assuming the price difference is significant), that's called a monopolistic practice and that SHOULD be regulated...

..not some outdated socialism-run-amok law. What was the unemployment rate in France in 1981?

posted by : agamemnus, 22 January 2008 Complain about this comment
Ugh what?

Never expect to see this from the first country in Europe that practises democracy

Where's the "Liberty, Equality, Fraternity" stuff? 

No free delivery? Aww

posted by : Some Guy, 21 January 2008 Complain about this comment
@Silly Amerians

Yeah, let them sell books under the cost till the competition go belly up and then finaly have monopoly, let them dictate which books are published and sell those with 200% profit. 
It's the oldest scam in the business world and pretty much every country has laws against it. It's just that 


Oh, and who pays for unemployment benefits(even ultra liberal US have those, so don't start with anti-socialist rant), retraining costs and medicare of all those booksellers that had to close down because Amazon used money from US market to finish them off?
Well, every French taxpayer. 


Amazon is trying to screw the French threefold:

1. Instituting corporate run censorship and forcing authors and publishers to write certain type of books. You already have this in your precious US, with commercial networks cutting out poem that is taught in schools.
2. Rip off everyone by offering grossly overpriced products in the longer run. You know, amazon doesn't offer free delivery because it likes you so much, it does it because they already calculated that they will get even in the future.
3. Dumping the costs of transforming an entire industry to their liking on taxpayers.

posted by : joetf, 21 January 2008 Complain about this comment
French Citizen?

That sounds like a response from the party trying to stop Amazon more than "A French Citizen"

posted by : nox, 20 January 2008 Complain about this comment
*laugh*

another reason people hate french "capitol ism"
their socialist views on retail policies hurts only their own economy.

posted by : rick, 20 January 2008 Complain about this comment
Really?

So in France you would rather pay more for a book then less? You really are of the opinion that "I can buy that book for 10euros in that shop, but if i can get it for 15 i would rather pay 15". Really? 
Honestly? 
?

posted by : Phil, 19 January 2008 Complain about this comment
@A French Citizen

"As French citizen, I will ask amazon to respect the culture and wishes of the country they are trying to get in, respect where you go, and stop trying to dictate the way you want. "

Would that be the culture of laziness and entitlement?

posted by : not a french citizen, thankfully, 19 January 2008 Complain about this comment
Let s give some back ground

When tourist come in France, they are always amazed by our croissants and our food, by the little commerce all around the cities, and how good life is in France. This does not happen randomly, we have laws to protect those like commerces. Amazone.fr is trying to creat a precedent that may thread this.
As French citizen, I will ask amazon to respect the culture and wishes of the country they are trying to get in, respect where you go, and stop trying to dictate the way you want. 
We are firmly decided to protect our culture. 
Capitalism need to have limits, and here , it is one of them.
We have laws to regulate commerce that are a little different, we pay more tax than most of the people on earth to protect le Louvre and all those wonders we have in France. Respect our choice, or pay the concequences.

Know that we support our judge on this one.

My Freedom stop where yours start, and vis et versa!

posted by : A French Citizen, 18 January 2008 Complain about this comment
Price fixing

Why doesn't the World Trade Organization fine France for price fixing the sale of books. What happened to free trade?

posted by : James Linnehan, 18 January 2008 Complain about this comment
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