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France imposed three euro fee in October 2023

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Amazon ( AMZN ) began challenge in French court that sought

guidance from

EU's highest court

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France defends its measure, saying protects smaller

players

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European Commission criticises French fee

By Foo Yun Chee

LUXEMBOURG, April 3 (Reuters) - Amazon ( AMZN )

criticised a book delivery fee imposed by France two years ago,

telling Europe's top court on Thursday the measure was

discriminatory, protectionist and a breach of European Union

law.

France's efforts to protect its cultural heritage and

traditions have frequently put it at odds with tech and online

companies, notably one of the biggest Amazon ( AMZN ).

Paris introduced the three euro ($3.31) fee in October 2023

to help local independent bookstores counter competition from

Amazon ( AMZN ), which had until then charged a euro cent on book

deliveries in France. The French fee does not apply for

purchases above 35 euros.

Amazon ( AMZN ) challenged the fee at France's highest administrative

court that in turn sought guidance from the Court of Justice of

the European Union (CJEU).

"This is an economic measure by a member state for the

protection of its bricks and mortar retailers. It is a

discriminatory measure which only benefits retailers with a

physical presence in France," Amazon's ( AMZN ) lawyer Yann Utzschneider

told the CJEU.

"This is a protectionist measure in complete breach of EU

laws," he said.

Utzschneider said the measure also favours large retailers

like FNAC and hypermarkets like Carrefour where customers can go

to one of their branches to pick up their book purchases and

avoid the fee.

He said the measure breaches the EU e-commerce directive

that governs online sales and purchases across the 27-country

EU.

"France can't be allowed to carve up the single market to

suit their own national interests," Utzschneider said.

France defended its measure, saying large online retailers

have an unfair advantage compared to smaller rivals.

"The major retailers are using their delivery methods as a

way of creating a new type of competition on the book market,"

Brice Fodda, a lawyer for the French government, said.

"These players have taken advantage of the fact that they

are large players, and they are able to offer a free delivery

service or a very cheap delivery service," he said.

The European Commission also criticised the French fee.

"This measure clearly has an economic background, to modify

competition to the detriment of Amazon ( AMZN )," Commission lawyer Bruno

Stromsky told the panel of five judges.

He voiced doubts whether French independent book stores need

to be protected, pointing to the network of 3,300 independent

bookshops in France as the densest network in the world and the

leading book sales channel.

The CJEU will rule in the coming months.

The case is C-366/24 - Amazon EU (Tarifs minimaux de

livraison de livres).

($1 = 0.9073 euros)