"Hardly a level playing field" - what online vs. bricks?
Steve, stores don't have to charge for delivery because the customer can go there to pick it up. When did you last visit an Amazon store to pick up your book? Amazon are welcome to bundle delivery cost with the book, but it seems pretty clear - you can't do anything to discount beyond 5%.
While some might consider the basic law anti-competitive, it has the benefit of making sure that towns actually *have* bookshops. As Fraser observes, the French have made their decision, and whenever I visit France (I used to live there, too) I do think that they might have some things right.
The fact that they don't do things our way doesn't *always* mean they've got it wrong ... even though they get it wrong quite enough without our help.