France Fines Amazon for Free Shipping

The Tribunal de Grande Instance in Versaille ruled in December that Amazon is violating the 1981 Lang Law with it's super-saver free shipping. The Lang Law forbids booksellers from discounting books by more than 5% of the list price. Amazon's free shipping exceeds the 5% discount.

The tribunal gave Amazon 10 days to stop offering free shipping on books or else face a daily fine of €1000. Amazon was also ordered to pay €100,000 to the French Booksellers' Union to cover legal fees and any losses in book sales.

Jeme under fire from French law. Theff Bezos, CEO of Amazon sent out an email to French Amazon customers stating that, "France would be the only country in the world where the free delivery practiced by Amazon would be declared illegal." He then asked customers to sign an online petition, which 120,000 people already have.

The Tribunal will review the case in 30 days, at which point it can reduce or increase the fine. Amazon plans to fight the ruling.