Settlement over e-Book Pricing to Undo Apple's Agency Model for Pricing?
Earlier this month, we reported on word from the U.S. Department of Justice that regulators were looking at filing suit against Apple and e-book publishers over the "agency model" of pricing championed by Apple leading up to the launch of its iBookstore. Under the model, retail book prices are set by publishers, with retailers receiving a cut of the proceeds.
Of most concern to regulators, Apple's agreements with the publishers included "most favored nation" clauses that prevented publishers from selling their books through any other retailers at lower prices than offered through Apple's iBookstore. Reuters now reports that the parties involved in the dispute are continuing to move toward a settlement in order to ward off a lawsuit, and that the settlement is likely to see the removal of these clauses. As a result, the publishing industry will likely in some form return to the previous wholesale model in which retailers set their own prices for books.
While negotiations are still fluid, the settlement is expected to eliminate Apple's so-called "most favored nation" status, which had prevented the publishers from selling lower-priced e-books through rival retailers such as Amazon.com Inc (AMZN.O) or Barnes & Noble Inc (BKS.N), the people said.
The deal could also force a shift, at least temporarily, in pricing control from publishers to retailers, one of the people said.
Such a move to a "wholesale model" would not only benefit consumers but also Amazon, which had been the leading bargain e-book retailer with its Kindle reader.
Under the wholesale model, Amazon priced e-books at or even below cost in many cases in order to draw in customers who would then purchase other items from its online store. But the practice generated concern among publishers that their works were being devalued, and many were happy to sign on with Apple's agency model in order to create more price stability.
Analysts estimate that a return to the wholesale model could add $1 billion to Amazon's revenues this year given its commanding 65% share of the e-book market and the impact of discounted pricing on sales of other items in its store. Book sales make up only a small portion of Apple's revenue, with estimates pegging iBookstore sales at roughly $50 million annually, and the company is expected to see little impact from any pricing changes in the book market.
Popular Stories
The iPhone 17 Pro and iPhone 17 Pro Max are around three months away, and there are plenty of rumors about the devices from credible sources.
Below, we recap key changes rumored for the iPhone 17 Pro models as of June 2025:Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone X...
Last week, we reported that iOS 26 introduces an opt-in Adaptive Power Mode on the iPhone, alongside the existing Low Power Mode.
Apple says that Adaptive Power Mode can make "small performance adjustments" when necessary to extend an iPhone's battery life, including slightly lowering the display brightness or allowing some activities to "take a little longer."
The full description of...
Apple has long been working towards an iPhone with an all-screen design, and it might finally achieve the feat in a few more years from now.
In his Power On newsletter today, Bloomberg's Mark Gurman said that Apple will shrink the size of the Dynamic Island on new iPhone models released next year. A year after that, he expects Apple to release a redesigned 20th-anniversary iPhone model....
Apple provided developers with the second beta of iOS 26, introducing the first changes and refinements to the new operating system since it debuted after the WWDC keynote. Because we're early in the beta testing process, there are quite a few tweaks to iOS 26, which we've rounded up below.
Control Center
The background behind the Liquid Glass Control Center buttons has more blur, allowing...
With the second beta of iOS 26 that Apple provided to developers today, Apple addressed one of the major complaints that people have had with Liquid Glass.
iOS 26 beta 1 on left, iOS 26 beta 2 on right
The Control Center buttons are now slightly more opaque, making it easier to see the different control options even on a multicolored background. The new, more opaque look is apparent with the ...
Apple's upcoming iPhone 17 Pro and iPhone 17 Pro Max models are rumored to be equipped with a vapor chamber cooling system, and a leaker known as Majin Bu today shared a photo of an alleged copper thermal plate for the system.
Many high-end Android smartphones like Samsung's Galaxy S25 Ultra are equipped with a vapor chamber cooling system, which can manage heat dissipation inside the...
iOS 26 is gaining two new Wi-Fi features, including Captive Assist and Wi-Fi Aware.
MacRumors contributor Aaron Perris discovered a reference to Captive Assist within the code for the first iOS 26 developer beta, but Apple has yet to enable the feature. It should be available by the time the software update is released later this year.
In his Power On newsletter last month, Bloomberg's...
While the dust is beginning to settle on the first iOS 26 beta, we continue to take a closer look at new features coming with the update.
Below, we recap five smaller changes that you might have missed.
Emoji Game
Apple News+ subscribers in the U.S. and Canada can play a new Emoji Game, which tasks players with completing words and phrases with emoji.
This is the fifth game that is...
Apple is running a new promotion that offers free AirPods to qualifying customers.
Now through September 30, college and university students in the U.S., Canada, Mexico, and Singapore can receive free AirPods 4 when they purchase an eligible new Mac or iPad from Apple. AirPods Pro 2 are also available at a discount.
If you do not want AirPods, the promotion also offers various other...