Defiant Amazon Will Pay Fines Rather Than Give Up Free Shipping In France

from the liberty,-equality-and-shipping-fees dept

A month ago, we wrote about the somewhat bizarre ruling in France that Amazon cannot offer free shipping within the country, as it represents an excessive discount in a country where the price of books is strictly regulated. Amazon was told that it would be fined 1,000 euros per day for continuing. Amazon has now appealed the ruling and defiantly noted that it will pay the fine rather than give in. Of course, after thirty days, the court can review the situation and could (and likely will) raise the fine to respond to Amazon's outspoken defiance. Legal experts quoted in the article suggest that there's very little chance that Amazon can win the appeal, but Amazon seems to be using this battle as a way to drum up some extra attention for its free shipping policies (for now) in France. Eventually, it may have to give in, but in the meantime, for 1,000 euros a day and all the news coverage, it's a pretty cheap advertisement for Amazon's free shipping offering.

Filed Under: fixed prices, france, regulatory pricing
Companies: amazon

France Says Non! To Amazon's Free Shipping

from the we-want-our-citizens-to-pay-more dept

I've never quite understood European laws that bans the discounting of books. It's one of those protectionist laws that ends up harming everyone. While economically-challenged folks will say that it helps save independent bookstores, they are unwilling to admit at what cost: less innovation in the way books are sold, fewer books purchased and higher prices for everyone. And, there's actually evidence to suggest that it really doesn't do much to protect those independent booksellers after all. The UK ditched such price fixing over a decade ago and didn't see the expected demise of independent booksellers. However, France is still a big believer in the concept and has now told Amazon.com it can no longer offer its famed "free shipping," since that effectively is an excessive discount. Amazon now has ten days to start charging shipping fees, or face daily fines. In other words, ordering books online just got a lot more expensive. It's difficult to see how that helps anyone.

Filed Under: fixed prices, france, regulatory pricing
Companies: amazon