(Updated with settlement news) As suspected, the US Department of Justice has sued Apple and publishers over claims of unfair e-book pricing. The complaint accuses Apple of colluding with publishers by both requiring a switch to an agency model, where publishers set the prices and ask for more, as well as demanding "most favored nation" status where no rival could have a lower price than the iBookstore. Some publishers are believed to have settled, but Hachette, HarperCollins, Macmillan, Penguin, and Simon & Schuster are all targeted.Apple and Macmillan are believed to be the only two companies that didn't participate in negotiations, but the lawsuit indicates that none of the major outlets had reached a settlement before the DOJ action. A late update from Bloomberg has cited a pair of sources claiming Hachette, HarperCollins, and Simon & Schuster could settle as soon as Wednesday.
DOJ officials are primarily concerned that Apple's e-book deal, made ahead of the iPad launch, is keeping e-book prices artificially high. Apple has asserted that Amazon had near-monopoly market share of e-books at the start of 2010 and that the pricing change helped level competition, not just for Apple's iBookstore but for Barnes & Noble's Nook Store and other digital peers. Amazon isn't considered innocent in the case as it was regularly accused of price dumping at the time, selling books below cost to squeeze out competitors that couldn't afford to lose money.
Apple's rationale for holding out isn't clear. If aware that most publishers are likely to settle, it may not have much choice but to face a penalty if it decides against settling on its own. DOJ officials may not block the agency model, but they will likely demand Apple give up the most favored nation clause and let Amazon, Barnes & Noble, and others charge less.
Update: Court filings reportedly show that Simon & Schuster, Hachette, and HarperCollins have already settled.
DOJ lawsuit vs. Apple, publishers over e-books
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четвртак, 12. април 2012.
DOJ sues Apple, publishers over e-book pricing [u]
Australia may join in targeting Apple, e-book publishers
The Australia Competition and Consumer Commission is considering taking the same path that the US Department of Justice did in confronting Apple and publishers over e-book pricing. Regulators have been asking Australian retailers whether they thought publishers were rigging pricing in the country. There were "competition concerns" whenever a company wanted to curb the ability to put a product on sale, the agency said.ACCC officials wouldn't say whether there was a full investigation underway, or whether the agency was inclined to pursue any legal action. It had been kept up to date on the DOJ actions.
Investigations have already been going on outside of the US, including a UK investigation that has also included Amazon. A common thread of concern exists that Apple's emphasis on the agency model, where publishers set the price, and a no-lower-price clause have artificially inflated prices from a typical $10 to $13 or $15.
Apple has denied damaging competition and has argued that the iBookstore ultimately helped balance the market. Amazon had roughly 90 percent of e-book share before the iPad arrived and, along between Apple's tablet and Barnes & Noble's Nook, is now closer to 60 percent. Publishers haven't had as strong an argument, although they have noted that Amazon was regularly selling e-books in the Kindle Store below cost, creating artificial expectations for how much a title should cost.
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Apple extends online store discounts to iBooks publishers
Apple is now offering special discounts at the online Apple store for some or all iBookstore publishers, TUAW reports. Buyers must go through iTunes Connect, but discounts on computers can range from $60 off the cheapest Mac mini to $500 off the base-level Mac Pro. The major limitation is quantity, as shoppers are said to be restricted to two Macs, two iPods/iPads, and one Apple TV.The discounts are also described as part of a new iTunes VIP program. Little else is known about the effort, but the company may be trying to attract more small publishers to the iBookstore. The company has been growing efforts to compete with Amazon in this area, most notably by releasing the free iBooks Author tool late last year.
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