U.S. Department of Justice Also Conducting e-Book Antitrust Investigation

I'm very curious to see what the US and EU investigations lead to, but it's hard to argue against the data that, with Apple's entry into the market, many eBooks that cost $9.99 now cost $11.99-12.99 and relatively few are offered at prices substantially lower than the $9.99 to offset. Likewise, before Apple revised it's pricing model for digital music, it all cost $0.99 on iTunes and often $0.89 on Amazon, and now most of the music costs $1.29. In neither case is it clear that the move caused broader adoption of the medium by publishers.

I'm not saying I'm against the agency model, and it has all kinds of advantages in leveling the playing field for smaller publishers and independents, but the net impact (I was buying both eBooks and downloaded music before this pricing model) is that stuff costs more now than it used to.

Then again, isn't everything more expensive these days? ;)

I'm not saying you are right or wrong, just that I remember when a cup of joe was a nickle and you could go to the moving picture show for ten cents. :D

It is written right in the Jobs book on what he did.

Too bad it is probably legal but I think it stinks.

Amazon had been pricing books to what people expected e-books to cost.

In comes Jobs and tells the publishers, we will let you sell at whatever price you want but if someone sells it cheaper, we can drop the price.

This let's the publisher tell Amazon, if you drop the price, we won't let you sell our books.

If this would have happened with music, we would be paying $4-$5 per song.

For people that have no problem with what Apple has done to e-book pricing...
Ever notice how the price of the major e-books don't fluctuate?
Hardcover versions vary wildly (up to 40% off) during the first weeks/months of release but the e-book price stays exactly the same on both iBooks and Amazon.
Isn't there something wrong with that?
Is that a free market system?

Because of Apple, the publishers get to say, pay what we want or you can't sell our product.

Lucky for me, there are easy ways to circumvent their "practices".

I foresee a similar outcome as with the Microsoft antitrust case. Both sides of the Atlantic will find the defendants guilty. In Europe the fines will be steep and the terms severe. In America the fines will be relatively minor and the terms will allow them to be paid in something other than actual money. Shortly thereafter America's antitrust regulations will face another round of rollbacks to help ensure this sort of thing never happens again.

Sounds good to me...

I'm very curious to see what the US and EU investigations lead to, but it's hard to argue against the data that, with Apple's entry into the market, many eBooks that cost $9.99 now cost $11.99-12.99 and relatively few are offered at prices substantially lower than the $9.99 to offset. Likewise, before Apple revised it's pricing model for digital music, it all cost $0.99 on iTunes and often $0.89 on Amazon, and now most of the music costs $1.29. In neither case is it clear that the move caused broader adoption of the medium by publishers.

I'm not saying I'm against the agency model, and it has all kinds of advantages in leveling the playing field for smaller publishers and independents, but the net impact (I was buying both eBooks and downloaded music before this pricing model) is that stuff costs more now than it used to.

The problem comes from the whole system favoring big businesses rather than small startups. The big corporations enjoy way more tax cuts, have lower tax rates and generally more bargaining power.

If the system is composed of more, smaller companies, publication houses in this case, I don't see how the agency model will be a problem at all. Much like what is happening now in the app space.