Apple Notifies European Publishers of 5-Year Halt to 'Most Favored Nation' E-Book Clause

As noted by SetteB.IT, Apple has notified its European publishing partners for the iBookstore that it has suspended the "most favored nation" clause of its book-selling contract for a period of five years. The clause had prevented publishers from selling their books to other distributors at prices lower than those offered to Apple.

The arrangement had been the subject of an antitrust investigation by the European Commission and a settlement in that case was officially approved last week.

Apple hereby notifies you that, until December 18, 2017, with respect to any book sold in the European Economic Ares (EEA), Apple will no longer apply nor enforce any retail price parity (also know as retail price MFN) provisions in your eBook Distribution Agreement (e.g. Section 5(b) of the Agreement). The change is being made pursuant to a settlement between Apple and the European Commission to resolve case number 49847. The European Commission investigation of Apple's eBook business is now closed. The European Commission has signaled that it will not challenge any other term of our ebook distribution agreement.

ibookstore europe ebook settlement
Apple notes that the EEA where the new directive applies includes Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.

Apple worked with publishers to facilitate a landmark shift in the business model for selling books, shifting to an "agency model" in which publishers set retail prices and distributors such as Apple receive a negotiated share of that retail price, similar to how the App Store operates. Under the previous wholesale model in which distributors were allowed to set their own retail prices, Amazon was able to hold a dominant share of the market as it sold books at or below cost in order to entice customers into visiting the site to purchase other products and services.

A key part of the agency model was Apple's "most favored nation" clause guaranteeing that Apple received the best possible pricing from publishers. The move effectively meant that all major distributors offered very similar pricing on books, but with the elimination of that clause publishers are now free to negotiate with distributors, a move that will likely to allow market leaders like Amazon to gain better pricing than smaller rivals.

Top Rated Comments

yetanotherdave Avatar
119 months ago
Excellent, I'm sick of ebooks costing more than dead tree books, and apple are totally to blame with their anti consumer anti competition crap. Most favoured nation? Wtf?

And usually these forums are so full of "competition is the only way to do things, anything else is amoral"..
Score: 10 Votes (Like | Disagree)
bawbac Avatar
119 months ago
What I find amusing is there is nothing stopping people from finding PDFs of books in Google by doing a search for a book and choosing advanced search File:PDF and then converting the PDF using Calibre to ePub. True, you might not be able to find all your books, but I bet a lot will be available in PDF somewhere.

Then your issue of it working on any device is solved.
Thanks for detailing how to steal eBooks.
Score: 6 Votes (Like | Disagree)
GS17 Avatar
119 months ago
Now, I have to pay more to buy an eBook on Amazon? That's too sad. :o

No, it means that you may buy it at the same price that you will find it on iBook store or maybe lower if amazon or others can get it at a lower cost to them or decide to sell it to a loss to get you to buy from them. It's a consumer win IMO
Score: 6 Votes (Like | Disagree)
Morod Avatar
119 months ago
Hooray! This should result in less expensive ebooks. That "agency model" is what kept the price of so many ebooks so high.
Score: 6 Votes (Like | Disagree)
cycomiko Avatar
119 months ago
So you are saying price match is a dumb idea; because it is better to pay more if BestBuy cannot get the product at the same low price as WallMart ?
http://www.bestbuy.com/site/Payment-Pricing/Best-Buy-Price-Match-Guarantee/pcmcat204400050011.c?id=pcmcat204400050011

To give you an example:
I bought the BluRay Movie "Leap Year" from ColumbiaHouse.com for $8.89, and on iTunes it costs $14.99 (both are 1080p). Because publishers can charge Apple more than what they charge the company which nowadays runs the ColumbiaHouse web-site. BUT THIS GOOD ?
And don't tell me the 30% which Apple is charging is causing the difference, because as you may know brick-and-mortar stores typically operate with overhead of about 50% - and not to rip you off; but just to make a profit to stay in business (Borders comes to mind).

Is it fair that apple gets to set terms of pricing for every company, removing a companies ability to loss lead, while ultimately leading to increased consumer pricing across the board.

EU and USA don't seem to think so.
Score: 5 Votes (Like | Disagree)
iphone495 Avatar
119 months ago
Good! This shouldn't be there in the first place.
Score: 3 Votes (Like | Disagree)

Popular Stories

AirPods Pro Gen 3 Mock Feature Red

AirPods Pro 2 Could Start a New Accessory Ecosystem

Friday January 14, 2022 2:34 am PST by
Apple's second-generation AirPods Pro could arrive alongside a new series of accessories, recent leaked images suggest. Alleged leaked photos of the next-generation AirPods Pro obtained by MacRumors showed a charging case with a metal loop on the side for attaching a strap. Apple has not used this design for any of its other AirPod models and it is unclear why it would be added in this...
netflix2

Netflix Again Raises Prices for All Plans, 4K Streaming Now $20 Per Month

Friday January 14, 2022 12:46 pm PST by
Netflix today updated the prices for its streaming plans, and all of its offerings are now more expensive. The Basic plan is now priced at $9.99 per month, the Standard plan is priced at $15.49 per month, and the Premium plan is priced at $19.99 per month. The Basic plan is $1 more expensive, up from $8.99 per month. This plan allows users to watch on just one screen at a time, and it limits ...
iPhone 14 Mock pill and hole 16x9 120hz

Analyst: All iPhone 14 Models to Feature 120Hz Displays, 6GB of RAM, and More

Friday January 14, 2022 7:02 am PST by
Apple is rumored to announce four new iPhone 14 models in September, and ahead of time, analyst Jeff Pu has outlined his expectations for the devices. In a research note with Haitong International Securities, obtained by MacRumors, Pu claimed that all iPhone 14 models will feature ProMotion displays, compared to only Pro models currently. ProMotion enables a variable refresh rate up to 120Hz ...
ios 15

Apple Releases Minor iOS 15.2.1 and iPadOS 15.2.1 Updates

Wednesday January 12, 2022 10:05 am PST by
Apple today released minor 15.2.1 updates for iPhone and iPad users, and the software comes one month after Apple launched iOS 15.2 and iPadOS 15.2 with a slew of improvements. The iOS 15.2.1 and iPadOS 15.2.1 update can be downloaded for free and the software is available on all eligible devices over-the-air in the Settings app. To access the new software, go to Settings > General >...
maxresdefault

Hands-On With LG's 32-Inch UltraFine OLED Pro Display

Wednesday January 12, 2022 1:12 pm PST by
LG in December announced the launch of its new 2022 32-inch UltraFine OLED Pro display, and in our latest YouTube video, we went hands-on with it to see how it compares to Apple's Pro Display XDR and whether it might be worth picking up depending on the price point. Subscribe to the MacRumors YouTube channel for more videos. Officially named the "32BP95E," the display features a resolution of ...
iPad Pro Big Ol Logo Orange

Next iPad Pro Might Feature Large Glass Apple Logo to Allow Wireless Charging

Friday January 14, 2022 10:44 am PST by
Bloomberg's Mark Gurman and Debby Wu last year reported that Apple had tested a new iPad Pro with a glass back for wireless charging capabilities. In a recent edition of his newsletter, Gurman said he expects the new iPad Pro to be released in 2022. While the new iPad Pro is still on track to feature wireless charging, 9to5Mac's Filipe Espósito today reported that Apple may have ultimately...
iPhone 14 Mock pill and hole

iPhone 14 Pro Now Rumored to Feature Both Pill-Shaped and Circular Cutouts

Wednesday January 12, 2022 9:26 am PST by
Apple is widely expected to remove the notch on iPhone 14 Pro models, but there have been conflicting rumors about the new design. Early rumors suggested that Apple would adopt a hole-punch design with Face ID somehow moved completely under the display, and later it was rumored that there would be a pill-shaped cutout instead. Now, display industry consultant Ross Young has claimed that...
fortnite apple logo geforce feature

Fortnite Coming Back to iOS Soon Thanks to Nvidia's GeForce NOW Service

Thursday January 13, 2022 11:19 am PST by
With the Apple vs. Epic Games lawsuit continuing on, there are no signs that Apple has any intention of allowing popular battle royale game Fortnite to return to the App Store on iPhone and iPad. Epic Games has found a workaround though, by partnering up with Nvidia. GeForce NOW, Nvidia's streaming gaming service, will soon add Fortnite support, allowing Fortnite to be played through a...
iMac 27 inch 2020 sale

Deals: Apple's 21.5-Inch iMac Hits Record Low Price of $599.99 ($499 Off) [Update: Out of Stock]

Thursday January 13, 2022 4:05 am PST by
Amazon today has a great deal on the 2017 Intel 21.5-inch iMac (2.3GHz, 8GB RAM, 256GB SSD), priced at $599.99, down from $1,099.00. This is the best price we've ever tracked on this model, and it's only available at Amazon. The sale price will be reflected after an automatic coupon is applied at checkout. Note: MacRumors is an affiliate partner with some of these vendors. When you click a...