Legislation applying to books
From the economic point of view, books are subject to European competition
law and single-market legislation, although the European Commission takes
their cultural dimension into account in the application of Community
rules, as required by Article 151 (4) of the Treaty on European Union.
Book pricing
The Council, in its
Resolution of 12 February 2001 on the application of national fixed
book-price systems, pointed out that people need access, under optimum
conditions, to the widest possible supply of books. It pointed out also
that the Member States are free to decide whether or not to apply a national
statutory or contractual book-price system. Whilst fixed book-price systems
governed by national legislation do not come under the Community competition
rules, they must respect the provisions of the Treaty, particularly as
regards the free movement of goods.
On the other hand, European competition law applies to price agreements
between undertakings insofar as trade between Member States is affected
(Article 81 of the Treaty). Such arrangements are legal only if they do
not significantly restrict competition in a way which does not provide
benefit for consumers. The Commission has thus had to intervene in the
case of price agreements between undertakings in the same language area
for cross-border sales, for example between Belgium
and the Netherlands or between Germany
and Austria.
State aid for books
State aid designed to promote culture and preserve heritage may be authorised
by the Commission if it does not affect trading conditions and competition
in the Community to an extent that is contrary to the common interest
(Article 87 of the Treaty). The Commission was therefore able, with its
Decision
of 10 June 1998, to authorise State aid for the Coopérative
d'exportation du livre français on the grounds that such aid promoted
the dissemination of the French language abroad and had a cultural purpose.
Lending right
The development of public libraries has helped to widen access to reading.
In order to protect the rights of authors, the Directive
of 19 November 1992 on rental right and lending right sets out the
principle of granting an exclusive lending right, i.e. allowing those
concerned to prohibit or authorise the lending of their works by public
institutions. However, Member States may simply introduce a right to remuneration
and may exempt totally from the lending right certain categories of public
establishment.
Taxation on books
The Internet is providing new distribution channels for books. The sale
of books, which are, like other goods, subject to value added tax (VAT),
is therefore affected by the revision of the
1977 Directive on the VAT arrangements applicable to certain services
supplied by electronic means, relating to the place and rates of taxation
applicable to such services.
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