France bans free delivery of discounted books

E-commerce

by CBR Staff Writer| 27 June 2014

The online retailers can only offer a maximum discount of 5%.

French legislators have approved a law that will prevent online retailers like Amazon from delivering discounted books for free to customers in the country in a bid to protect the small book sellers.

The bill has already been passed in the lower house, National Assembly, and will now be sent for Presidential consent, which is expected to be approved in next two weeks.

Following the approval, the online companies will only be able to offer a discount of 5% but can't deliver the discounted books without charging anything to the customers.

French Culture Minister Aurelie Filippetti was quoted by AFP as saying that it showed "the nation's deep attachment to books".

Though the law did not specifically target Amazon, Filippetti criticised the online retail major's "dumping strategy" and for selling books at a loss.

Filippetti also criticised Amazon's practice of free delivery of books and company's tax arrangement, which claimed to report its sales in European region, to a Luxembourg-based holding company to take advantage of tax structure there.

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