See, this is _exactly_ why the government doesn’t need to step in to break the market.
Running a large online store is hard! Harder than running a small local business. Amazon.com has a giant fraud target painted on its back. Local stores can make a strong case for being more ethical and for shopping local. I would think, given the position of labor in French society, that it would be easy to get people to choose local if it is even somewhat close in terms of price and service.
The fake stuff on Amazon is a great case for skipping them entirely. The fact that (apparently) the government thinks that local booksellers cannot compete with a fraud/scam-riddled, employee-abusing marketplace is a giant red flag. Being a victim of fraud, and having to worry about fraud, is actually very inconvenient IMO.
I shop local when local means better service, better quality, locally-sourced ingredients, a better browsing experience (especially applicable to books), or really any other advantage. The bar for not buying online is on the floor; the only people to blame for small business not clearing that bar are small business owners.