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The cultural exception strikes again — France’s National Assembly will most probably pass the so-called ‘anti-Amazon’ law in the coming days. In a few months, Amazon won’t be able to offer free shipping for books in order to protect independent bookstores. It’s a logical evolution of the Lang Law.
Book prices in France are hard to understand from a foreigner’s perspective. Back in 1981, French Minister of Culture Jack Lang established a fixed price for books sold in France. Since then, publishers have been fixing the price, printing it on the back of the book.
Retailers from supermarkets to independent book sellers have had no choice but to sell those books at the official price. If you really wanted to compete on price, you could discount the book 5 percent below the publisher’s price — many bookstores chose to take advantage of this exception, but 5 percent was a reasonable price difference.
When it was created in 1981, the government wanted to protect independent bookstores against supermarket chains. It worked really well, and independent bookstores are still around, for the most part. In fact, similar fixed book price laws started popping up in other European countries, such as Italy, Portugal, Spain or Germany.
But bookstores had no idea that the most serious threat had yet to come — Amazon, Fnac and a few others opened their online stores.
Despite having to wait a couple days before getting your book, the two heavyweights Amazon and Fnac found a way to remain competitive: they priced the books 5 percent below the publisher’s price and they offered free shipping, all the time, for all book orders. Independent bookstores saw that as unfair competition.
Filippetti says that she has nothing against Amazon despite the law’s informal name — but free shipping has to stop.
As Amazon bills from Luxemburg where sales tax is very low, this model was sustainable and allowed the company to gain market share. The company is playing its usual market share game in France as well — profit and margins are not as important as increasing sales. Theoretically, the company can flip a switch any day now, increase prices and start the money-making machine.
Today’s French Minister of Culture Aurélie Filippetti says that she has nothing against Amazon despite the law’s informal name — but free shipping has to stop. In a few months, online retailers will have to choose between free shipping and the 5 percent discount.
If they choose the 5 percent discount, it won’t deduct 5 percent from the book price, but from shipping. For example, a $10 book with $2 of shipping costs can be priced at $9.50 — and consumers will still have to pay $1.50 of shipping costs.
The National Assembly and the Senate both successively passed the law project. The National Assembly now has to vote one last time. But since the text was only slightly modified, it should easily pass.
When it comes to book pricing, there is another interesting case: the ebook price-fixing case in the U.S. Apple was found guilty of fixing ebook prices with its iBookstore.
When the iBookstore was unveiled in 2010, the so-called agency pricing model took over ebook stores. Apple let publishers fix their prices, but forced them to put the same price tag on the Kindle Store, the iBookstore and every other ebook store.
That’s when the DOJ wrote an antitrust complaint. But instead of fostering healthy competition by letting ebook sellers set their own prices, competitors stumbled — Nook ebook sales dropped. The same is probably happening for other stores.
Now, Amazon is the undisputed leader. By preventing the agency model, the DOJ created an effective near monopoly. It gives a lot of power to the retailing company when it comes to negotiating profit sharing with publishers.
With France’s ‘anti-Amazon’ law, the government is going in the opposite direction and reiterating the long-standing tradition of protecting independent bookstores and publishers. Yet, is it going too far?
In December, France’s second biggest bookstore chain Chapitre filed for bankruptcy. $12.3 million (€9 million) of public money will be invested in the book industry in 2014 as online competition is increasingly hurting the industry.
So the real question isn’t whether the law is going too far, but whether it will be enough to save the 2,500 independent bookstores in France.
(Image credit: Casey Bisson)
The cultural exception strikes again — France’s National Assembly will most probably pass the so-called ‘anti-Amazon’ law in the coming day...
Making complicated decisions is an emotionally fraught process and (if you are like me) the process can leave you feeling paralyzed. ChoiceMap is a new free iPhone app that helps you break down complex dilemmas into a list of priorities, rate them by how they will affect your life, and then uses an algorithm to score decisions. You can use it for everything from figuring out the future of your relationship to just deciding what to eat for dinner.
It might seem a bit strange to use your iPhone to make the kind of decisions you’d usually talk over with a friend or hash out in your head (or a journal), but there are already several apps out there intended to help you make sense of your feelings. For example, TechCrunch’s Sarah Perez recently profiled Feels, which she described as “the pro/con list for the smartphone, emoticon-favoring generation.”
Both apps can help turn a mass of frazzled thoughts into cool, rational decisions, but I don’t think the two necessarily need to be seen as competitors. We all process things in different ways. For some people, seeing the emoticons Feels produces is helpful. For others, the bar graphs and percentages ChoiceMap uses to rank and rate your options are the way to go. Of course, the numbers only mean what you want them to mean, but looking at them gave me a much-needed moment of clarity on some issues that have been causing me a lot of anxiety.
Over the last week, I’ve used ChoiceMap to organize my thoughts and feelings on stuff ranging from what movie to watch next, as well as more personal issues I am too scared discreet to put on TechCrunch.
Back in May 2013, I wrote about an app called Expereal that was inspired by Daniel Kahneman’s 2010 TED talk “The riddle of experience vs. memory” and helps you keep track of your emotions by rating them on a 10-point scale each day. Emotions tend to play tricks on our memories and Expereal is intended as a tool to help users keep their recollections of certain events or periods of time free from cognitive bias.
ChoiceMap’s developer Jonathan Jackson was also influenced by Kahneman’s work. In this case, ChoiceMap draws on the psychologist’s writing about decision-making. In his book Thinking, Fast and Slow, Kahneman states that our thoughts are affected by two systems.
System 1 “is basically intuition, a black box. It’s hard to know what priorities influence our gut feelings. System 2 is slow, methodical, and conscious,” explains Jackson. “With ChoiceMap, you weigh priorities, so decisions reflect what you care about the most.”
As seen in the video above, Jackson was inspired to make ChoiceMap while working through important and complex decisions about his career path, which city he should move to, and a potential relationship. In addition, Jackson also worked with Ashoka, an organization that helps social entrepreneurs decide which social issues to tackle.
“I realized that the algorithm I wrote solved a personal problem: where I should move after grad school, but the math had the potential to solve a major social problem: everyone makes mistakes,” he says. “That triggered the idea of a digital platform to help everyone make better decisions.”
One of the things I like best about ChoiceMap is that you can create your own list of options or select from a wide assortment of templates for decisions ranging from “outfits” and “cars” to “breakup or stay together,” “baby names” and “career paths.” Jackson decided which templates to include by using ChoiceMap, of course.
“We compiled a list of suggestions from friends, beta testers, and our own lives. We ChoiceMapped that list and turned the top results into templates,” Jackson explains. “We researched each template’s priorities, too, to make sure we included important factors for each decision.”
I wish I had ChoiceMap when I was making the decision to move abroad several years ago. Instead of just sitting around dealing with a crazy-making mix of worry and excitement or engaging in anxiety-provoking discussions with friends (“There are a lot of mosquitos there. You’ll get bitten to death.”), ChoiceMap could have helped me sort out my hopes and fears in a much neater, more methodical way. Of course, you can do the same thing with pen and paper, but, to be honest, seeing the results of ChoiceMap’s algorithm is pretty fun and often enlightening. But ultimately, Jackson says the app does not set out to make final decisions–that’s still up to you.
“The funny thing is–with ChoiceMap–people don’t need to decide what’s best. They need to acknowledge their own priorities,” says Jackson. “ChoiceMap helps people clarify these priorities one step at a time. As users walk through ChoiceMap, they feed our algorithm everything it needs to rank their options. So, at the end of the line, people discover that they’ve already made the big decision through a series of tiny steps.”
ChoiceMap plans to start raising funds this month to create a larger platform for a wide range of decision making and already has a monetization plan in place. Jackson refrained from sharing too many details, but says “global-decision making is a big market.”
Future plans “extends well beyond the iPhone app,” he tells me. “We plan to change the way the entire world makes decisions–from picking the size of a latte to passing foreign policy. The app is a tiny step toward a much larger decision-making platform.”
Making complicated decisions is an emotionally fraught process and (if you are like me) the process can leave you feeling paralyzed. ChoiceM...
Facebook has developed a new mobile A/B testing framework, it announced today. In a post on the company’s engineering blog, engineers Ari Grant and Kang Zhang explained that when Facebook switched to native development stacks two years ago, it gave them finer control over many aspects of mobile development, but also meant losing the ability to A/B test.
With Airlock, Facebook can make new updates to their iOS and Android apps that “support 10 to 15 different variations of a single experiment and put it in the hands of millions of people,” which means that the company’s developers now have the ability to figure out which features work the best (or don’t) and improve mobile user experience much more quickly.
Even though 73% of its 1.19 billion users (as of September 2013) access the social network primarily through their mobile devices, Facebook has struggled to make sure that its mobile strategy keeps up with rivals like Twitter. Airlock will make it easier for Facebook’s developers to figure out what mobile users want, which is especially important because Twitter recently issued a major redesign of its own iOS and Android apps. Both social networks also have to compete with the increasing popularity of messaging apps like WhatsApp, Line and WeChat.
Airlock is the latest sign that Facebook is focused on fine tuning its mobile strategy. Back in April, it acquired Parse, which marked its entry into a new business category, or paid tools and services such as back-end data storage, for mobile app developers. And earlier this week, Indian startup Little Eye Labs, which makes a software tool for analyzing the performance of Android apps, announced its acquisition by Facebook. The Bangalore-based company’s team will move to Facebook’s headquarters in Menlo Park, where they will build analysis tools to help develop apps.
Facebook has developed a new mobile A/B testing framework, it announced today. In a post on the company’s engineering blog , engineers Ari ...
Earlier this week, Yahoo announced that it had acquired Aviate, a startup providing contextually relevant information on Android homescreens, but it didn’t say anything about the acquisition price. Now a source with knowledge of the deal tells me that the acquisition was for $80 million.
My source didn’t know any of the details beyond the amount — the mix of cash and stock or how much of the total is tied to an earn out, for example. Regardless, that’s an impressive price for a young startup that raised a $1.8 million Series A (from Highland Capital, Andreessen Horowitz, and others) less than a year ago.
When I reached out for this story, spokespeople from both Yahoo and Aviate declined to comment on the terms of the deal.
Yahoo has on a pretty visible acquisition streak since Marissa Mayer took over as CEO. Last month, for example, it acquired content delivery network provider PeerCDN. During her keynote at the Consumer Electronics Show, Mayer said that Aviate’s technology will allow Yahoo to deliver content in “smarter and more personalized” ways on Android phones.
Earlier this week, Yahoo announced that it had acquired Aviate , a startup providing contextually relevant information on Android homescreen...
Marketing technology company Ifbyphone is announcing that it has raised $9 million in Series D funding.
The round was led by new investor River Cities Capital Funds (a growth equity firm focused on healthcare and IT) and brings Ifbyphone’s total funding to more than $30 million. Previous backers Apex Venture Partners, Origin Ventures, and I2A also invested in the Series D, as did SSM partners. The round was also disclosed in a regulatory filing.
Ifbyphone offers products for marketing, sales, and customer support teams to track and automate their calls. Services include call tracking, interactive voice response, virtual call centers, and more.
Over email, CEO Irv Shapiro compared the company to Salesforce.com: “The magic with Salesforce is that it gives sales managers control over their own data. We give marketing and sales managers control over voice conversations and the data associated with those conversations.”
The company says it has nearly 4,000 paying customers, and that it processed more than 200 million phone calls and 600 million minutes as of December of last year. It plans to make 25 new hires in the first half of the year, bringing the total headcount to more than 115.
Marketing technology company Ifbyphone is announcing that it has raised $9 million in Series D funding. The round was led by new investor R...
Google today started rolling out the latest version of its Google Play services for Android. Just like earlier updates, version 4.1 brings a number of incremental changes to the company’s service for integrating Google services into mobile apps. The rollout is currently in process and should land on all Android devices worldwide within the next few days.
Today’s update brings support for turn-based multiplayer games to Play services, for example. With this, developers can easily build asynchronous games with up to eight participants. Every time a player takes a turn, the data is uploaded to Google’s servers and shared with the other players. Google has integrated this service with its tools for matching players with others, too.
Also new in this update is improved support for Google+ sharing. This, the company says, will make it “even easier for users to share with the right people from your app.” As part of this update, users will be able to get auto-complete support and suggested recipients for all Gmail contacts, device contacts and people on Google+.
Developers can now also use Play services to access Google Drive through a new API that’s now in preview. With this, they can read and write files in Drive. Users will be able to work on these files offline, and changes will be synced automatically.
For developers who use Google’s ad products, this new version introduces full support for DoubleClick for Publishers, DoubleClick Ad Exchange and Search Ads for Mobile Apps. What’s most interesting for advertisers, though, is that publishers can now also use a new location API to give Google access to a user’s location when requesting ads. Location-based ads are likely to perform better than generic ads, after all, though users have generally been a bit nervous about sharing this data with advertisers given the potential privacy ramifications.
One other feature most users will likely appreciate is improved battery life. While Google isn’t sharing any details about this, the company said that anybody who has Google Location Reporting turned on should see longer battery life after this update, though whether that means less than 1 percent more (likely) or 10 percent more (very unlikely) remains to be seen.
Google today started rolling out the latest version of its Google Play services for Android. Just like earlier updates, version 4.1 brings...