The lower house of France approved a bill to forbid online book stores from offering free delivery. Culture Minister of France Aurelie Filippetti accused the global multi vendor marketplace platform Amazon ‘dumping’ in order to destroy French competition. He supposed once Amazon’s competition was out of the way, the ecommerce multi seller website would raise its delivery prices. Amazon responded saying that the bill was “discrimination against online consumers”.
The new law was accepted to eliminate the advantage of large online multi seller malls over small brick-and-mortar retailers. Many book retailers in France complained how hard it was to compete with big online ecommerce players such as Amazon. According to a BBC correspondent in Paris the bill “might be seen as payback”, because the multi marketplace platform Amazon reports its European profits through a Luxembourg holding company to take advantage of a lower corporate tax rate.
Culture Minister of France also complained about Amazon’s earlier practices—free delivery and its tax optimisation policy. Amazon confirms that the arrangement is completely legal under EU’s market rules. Amazon is not the only big US company France is fighting. Google and Yahoo! also fell into disgrace. France forced Google to give French news outlets part of the revenue it gets from distributing their content. French minister Arnaud Montebourg blocked Yahoo! buying a majority stake in the French video site Dailymotion. The minister said he did not want 75% of the rare French web-success to be sold to an American giant.