Latest in Agency pricing

Image credit:

Justice Department formally charges Apple, big five publishers in e-book price fixing case (update)

51 Shares
Share
Tweet
Share

Sponsored Links

The Justice Department has formally decided to sue Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster over alleged e-book price-rigging. Apple and Macmillan have already denied any wrongdoing, saying that the agreements were enhancing competition in an industry previously dominated by Amazon. The case centers around a deal to switch to agency pricing, where the vendor takes a 30 percent cut of each sale rather than the wholesale model which allows stores to sell books at rock-bottom prices. It was previously believed that the publishers had cut back-room deals with the Government agency after bowing to pressure to withdraw Cupertino's "favored nation" status. If successful, the DoJ will allow Amazon and Barnes and Noble amongst others to return to the wholesale model to sell best-sellers at a loss, something that the big five are desperate to avoid, and will look to fight the battle in court.

Update: The PDF of the DoJ's filing is now available online -- it makes for fascinating reading.

Update 2: Bloomberg is now reporting that Simon & Schuster, Lagardère SCA's Hachette Book Group and HarperCollins have settled with the DoJ over unspecified terms. Hasty!

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Share
51 Shares
Share
Tweet
Share

Popular on Engadget

FTC issues its first ban on 'stalking' apps

FTC issues its first ban on 'stalking' apps

View
Fujifilm's X-Pro3 can focus in almost complete darkness

Fujifilm's X-Pro3 can focus in almost complete darkness

View
US Air Force gets its first anti-drone laser weapon from Raytheon

US Air Force gets its first anti-drone laser weapon from Raytheon

View
Mazda's first electric car opens up thanks to 'Freestyle' doors

Mazda's first electric car opens up thanks to 'Freestyle' doors

View
SpaceX hopes to offer satellite internet to customers by mid-2020

SpaceX hopes to offer satellite internet to customers by mid-2020

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr