Apple and Amazon Targeted in Probe of eBook Pricing Deals
The Attorney General for the State of Connecticut has launched an investigation into the eBook market, targeting Apple and Amazon for deals they are striking with publishers to ensure favorable pricing. Attorney General Richard Blumenthal argues that the deals prevent other marketplaces from offering even lower prices, hampering competition.
Both Amazon and Apple have reached agreements with the largest e-book publishers that ensure both will receive the best prices for e-books over any competitors -- contract provisions known as "most favored nation" (MFN) clauses.
In letters to Amazon.Com and Apple, Blumenthal is calling on the companies to meet with his office to address these concerns. Publishers that have reached such agreements with Amazon and Apple include Macmillan, Simon & Schuster, Hachette, HarperCollins and Penguin.
The full text of Blumenthal's letter to Apple (PDF) is available on the Attorney General's site.
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Right now when I walk into a book store...the price of a book is stamped on the cover. This is the same price across all book stores. It has been this way forever....what's the difference?
Umm that is a suggested price. Book stores are free to price lower or higher than that. BN for example generally charges 10-15% below that price.
We have competition here people... some politicians are beyond idiotic. If there is a same price on a book it's not because of an agreement, rather the publisher price gouging....
We have competition here people.
If the prices are fixed across all platforms - no, no we do not.
As evidenced with Random House (i think), they are not striking an agreement with Apple simply due to pricing concerns. So, if the distributors don't agree to the pricing terms, they are not allowed to sell the books. This, in and of itself, is anti-competitive and is on the fringe of anti-trust questioning.... The fact that all publishers are forging identical pricing agreements is evidence of collusion amongst the publishers.
Best outcome of this may be overall lower pricing for e-books
I wonder if Amazon has discounts/sales for selected ebook titles. Or if they lower the price after a certain time has passed... Then it would be like a used ebook pricing... :)
If there is a same price on a book it's not because of an agreement, rather the publisher price gouging....
It's the opposite problem. They're claiming others aren't allowed to have the "same price" on a book.
Dunno if it's true, but if so it is disturbing.
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