“Unfair competition” to French publishers has sparked governmental interference.

France’s lower chamber voted through a law protecting local bookshops from online giants, such as Amazon, on Thursday.  Stating that the book pricing law is part of their heritage, French lawmakers are prohibiting online book vendors from “offering free delivery on top of a maximum five percent discount on books” (Reuters) to its customers. The law, heading towards the Senate, is expected to pass by the end of this year.

Librairie Les Vraies Richesses in Grasse, France
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How badly Amazon will be affected by this law remains to be determined however when operating internationally, companies will constantly be susceptible to setbacks. The French who are adamant about protecting their books have a culture when it comes to protecting small book stores from losing to large competitors that Amazon evidently did not take into account.

There seems to be a pattern if I am correct in my findings. Businesses that do not observe culture well have faced significant setbacks. Starting up in a new place requires observation in order to survive. It’s about knowing your environment. It’s also about changing your organization’s culture to better match that of the location. Getting over the high barrier of entry to the international market (Porter’s Five Forces) isn’t all that has to be done, you also have to be able to survive.

Original Source: http://www.nytimes.com/2013/10/04/business/France-Takes-Aim-at-Amazon-to-Protect-Local-Bookshops.html?ref=international