France has NOT legalised Flat Fee P2P downloads.
This is a proposed amendment to article L-122-5 of the French Intellectual property rights code, and the French parliament has voted on it by a narrow margin. The government can overturn the amendment, either by re-opening debate or if the Senate votes it down when the bill moves to the upper house. The French government is against the amendment, and the French Culture Minister has asked that parliament re-open debate on the amendment today.
Let's wait to see what happens.
One point that puzzles me is that if uploading would still be illegal how could any files be shared? Before anyone can download, someone must upload.