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I don't exactly see what all the fuss is about. Without even changing the law, Amazon could actually be condemned for its free shipping practice on books (combined with the 5% discount).
As was said before, book prices are set by the publisher (in France) and prices may only be discounted up to 5%. Shipping the book costs money, however you choose to ship it and no matter how efficient you delivery service is. Even if that cost is reduced to the minimum, it's still not free. So, to offer free shipping, Amazon is either making deficit sales (not sure the term is correct in English), which is illegal in France except in specific circumstances, or offering a hidden discount on books... This of course doesn't concern e-books, which aren't shipped.
Government is probably citing Amazon because it's easier to convince people to act against a foreign corporation than a national one. If they want to take action however, they will have to include the "Fnac" which does exactly the same thing through it's website...
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