France’s high court ruled today that Amazon must stop offering free delivery of books. “Retail prices, particularly of books, are tightly regulated in France.” Not charging for delivery meant that Amazon was offering a discount above the allowed 5 percent. If you’re unclear how this is terrible for consumers and an insane public policy, you can read about price controls here.

More French wireless bashing

Thanks for visiting this blog for the first time. Check out the home page for the most recent posts, or the archives if you're looking for something in particular. Here are some of our favorite posts, which you might enjoy:

If you like what you see, we hope you'll consider subscribing to the RSS feed.

The WSJ reports that the French government has “rejected the sole bid it had received for the so-called third-generation, or 3G license, from French Internet start-up Iliad SA, on the grounds that it didn’t meet required financial criteria.” It also says that the “failed auction for a fourth mobile-operator license could forestall new competition and keep prices at their lofty levels for consumers[.]”

It seems like the French government is going to try to remove the technical roadblocks stopping the deal, and that desire for more competition is certainly gratifying. But what I’m more curious about is why there aren’t more bidders? After all the WSJ also says, “France is one of the more desirable markets in Europe for operators. Prices have remained high and competition — limited to the three operators — isn’t as brutal as elsewhere. Italy, for example, has four mobile operators and is set to roll out more.”

It wouldn’t have anything to do with forced business models, would it?

Oct 10, 2007 | Comment | Tags: , , ,

French Carterfone may halt L’iPhone

french-carterfone.jpgI love my iPhone. Despite what others might say, it is the most innovative mobile phone in a decade. I also think innovators should be rewarded, which is why I’m fine with the iPhone being locked to AT&T’s network. As a result, Apple gets a cut of my (and every other iPhone owner’s) wireless bill.

France might be left behind when it comes to this innovation, however. That country has laws similar to the wireless Carterfone rules Tim Wu, Skype, and others have advocated for the U.S. Locked phones in France must be unlocked by the carrier upon user request, and wireless carriers must also sell unlocked versions of their mobile phones. As a result, Apple is considering keeping the iPhones off French shelves indefinitely.

To me it’s clear that forced access laws limit innovation. I think folks who propose such rules want to have their cake and eat it, too. That is, they want the innovation that comes from entrepreneurs acting in a free market (and often fueled by exclusive deals such as the one between Apple and AT&T), and they also want the forced openness of networks. They think that the latter will have no impact on the former; that innovators will innovate regardless of the incentives. The iPhone snag in France, however, shows that incentives do matter.

Oct 9, 2007 | Comment | Tags: , ,

  •  
  •