Apple and publishers under fire for ebook price fixing
The European Commission and the US Department of Justice have begun investigations into the agency pricing model employed by ebook publishers on digital platforms like Apple's iBooks. The question to be answered is whether that system represents a form of price fixing and runs counter to competition laws in the two big jurisdictions.
Keep track of the investigators' findings and other developments right here.
US DoJ calls Apple's ebook antitrust defense 'unconvincing,' presents Steve Jobs email as evidence
The US Department of Justice (DoJ) has called Apple's defense of its ebook practices "unconvincing" in a filing related to an upcoming antitrust case. Apple stands accused of colluding with major publishers to raise the price of ebooks with the launch of its iBooks app and store. The publishers and Apple have defended their actions as an attempt to break Amazon's grip on the market. However, all five of the named publishers in the case have settled with the DoJ, accepting terms that would...
Penguin to terminate ebook deal with Apple in bid to end European antitrust investigation
The European Commission's investigation into Apple and major book publishers over ebook price-fixing may soon come to an end after Penguin became the last agency to offer a settlement in the antitrust case. The Commission today published a new notice on its website inviting comments from "interested parties" on Penguin's proposal to terminate existing pricing agreements with Apple which would see it refrain from signing similar agreements for five years.
Tim Cook ordered to testify in ebook price-fixing case
Judge Denise Cote has granted the Justice Department's request to make Apple CEO Tim Cook sit for a deposition in an ongoing ebook price-fixing lawsuit. The suit originally involved Apple and five major US publishers, all of whom were accused of collaborating to keep prices artificially high. Now, Apple remains the only party that's refused to settle, with a trial currently set for June. If found guilty, Apple faces an injunction against similar conduct going forward, which could potentially...
Macmillan settles in ebook price-fixing case, leaving Apple a lone holdout
The US Department of Justice has announced that it's settled with Macmillan in an ebook price-fixing case involving Apple and several other publishers. In a statement, the DoJ said Macmillan has agreed to lift restrictions on discounting ebooks, and to report on any joint ventures or collaborations with other publishers. Macmillan, HarperCollins, Penguin, Simon & Schuster, and Hachette were all accused of conspiring with Apple to raise the prices of their ebooks in response to Amazon's low...
Penguin settles with US government in ebook price-fixing case
Book publisher Penguin has just settled with the US Department of Justice over an ongoing ebook price-fixing lawsuit. That leaves only Apple and publisher Macmillan out of the original defendants; Harper Collins, Simon & Schuster, and Hachette all finalized a settlement back in September. Like the other publishers, Penguin will terminate its agreement with Apple and other ebook retailers and will be constrained for two years from entering into any agreements that limit retailers' abilities to...
Apple and publishers settle with EU after ebook price-fixing investigation
Apple and book publishers may see their ebook price fixing drama come to a close in Europe soon: Reuters reports that EU regulators will accept an offer allowing Amazon and others to sell ebooks at lower prices than Apple, which will reportedly end the antitrust investigation and allow Apple and others to avoid fines. The proposal was offered by Apple, HarperCollins, Hachette, Macmillan, and Simon & Schuster in August. The group was accused of colluding to fix ebook pricing instead of...
Amazon details ebook price-fixing refund policy, will give up to $1.32 per book
Customers that purchased an ebook from Amazon between April 2010 and May 2012 will receive a partial refund soon. The Wall Street Journal says that Amazon has begun to email customers informing them that they'll receive between $0.30 and $1.32 for each ebook from the publishers named in the lawsuit — namely Hachette, HarperCollins, Macmillan, Penguin, Simon & Schuster, and their subsidiaries. The top-tier credits will be reserved for titles that made The New York Times' bestsellers list at...
Apple and four publishers agree to terminate 'agency' sales model in Europe
Apple and four major book publishers have agreed to terminate their existing agreement for selling ebooks at higher prices as part of the ongoing European Union antitrust investigation into ebook sales practices. Under the new settlement, the "agency" agreement between Apple and publishers is abolished; instead, retailers are free to set the price of ebooks anywhere they choose over the next two years, provided that the value of the discounts offered does not exceed the value of the sales...
Amazon offering discounted HarperCollins ebooks following price fixing settlement
Just a few days after a federal judge approved a settlement offer by several major book publishers who were sued for allegedly fixing the prices of ebooks, Amazon has already begun discounting titles from one of the publishers. A number of ebooks from HarperCollins — which was part of the settlement along with Hachette and Simon & Schuster — are being offered at discounted prices, with an Amazon spokesperson confirming to paidContent that "we are happy to again be lowering prices on a...
Federal judge approves settlement offer in ebook price fixing case
According to Bloomberg, a federal judge has approved a settlement offer by publishers in the civil case brought against them by the US for alleged price fixing of ebooks. The offer involves three of the five publishers that were initially targeted by the Justice Department. Harper Collins, Simon & Schuster, and Hachette all elected to settle, while MacMillan and Penguin, along with Apple, have yet to put forth a settlement offer.
The financial terms of the settlement, which was originally...
Apple and publishers offer retailers discounted ebooks in bid to avoid EU antitrust fine
Apple and four major European publishers are offering to sell ebooks at a discount in an attempt to end an EU antitrust investigation into price-fixing. The news comes from an unnamed source at Reuters, who adds that the discount would last for two years. The publishers, which include giants like Harper Collins and Simon & Schuster, were accused of colluding to fix ebook pricing at a certain level instead of competing, possibly "with the help of Apple." According to Reuters, the deal...
Ebook publishers agree to $69 million settlement in state price-fixing lawsuit
Hachette, HarperCollins, and Simon & Schuster were quick to strike settlements in state antitrust lawsuits brought earlier this year over alleged ebook price fixing. Now, the two sides have settled on a payout, as well, with the publishers agreeing to pay a total of $69 million to consumers across 49 states and five US territories.
The proposed settlement would go into effect 30 days after being approved by a federal judge in New York. At that point, customers who purchased agency-priced...
Department of Justice defends original price fixing settlement, calls Apple and publisher comments 'self-serving'
After receiving 868 public comments on its investigation of possible ebook price fixing, the US Department of Justice has responded (PDF) with harsh words for Apple and major publishers, saying that it will continue with the case and settlements as planned. While reiterating many of its original claims, it also argued against its critics, particularly those who believe ebook sellers and publishers were responding to monopolistic behavior by Amazon. Antitrust laws were "enacted to protect...
Barnes & Noble objects to proposed DOJ ebook settlement, credits agency model for saving industry
Barnes & Noble today filed a comment with the US Department of Justice objecting to a proposed settlement in the government's price-fixing lawsuit against several book publishers. In a 26-page document, the retailer slams the DOJ for attempting to regulate an industry "that it little understands." B&N asserts the settlement as it stands now is "overboard" and would ultimately see American consumers come out on the losing end — forced to endure "higher overall average e-book and hardback...
Policy & Law
Penguin and Macmillan 'flatly deny' ebook price-fixing claims in court filings
Several publishers have already settled with the US government after being accused of ebook price fixing, but Penguin and Macmillan have lashed out instead, accusing the Department of Justice of piling "innuendo on top of innuendo" while misinterpreting the facts it does possess. In a pair of court documents filed May 29th, the two companies "flatly denied" all but the most innocuous allegations, including claims that the companies had met to discuss raising prices. Though both companies said...
Apple filing claims that the DOJ's ebook lawsuit 'sides with monopoly, rather than competition'
Just as it did in public statements, Apple's taking a strong stance in its defense against alleged price-fixing actions in concert with major ebook publishers. In US District Court filing yesterday, Apple claimed that "the Government's Complaint against Apple is fundamentally flawed as a matter of fact and law," going on to say that "Apple has not 'conspired' with anyone, was not aware of any alleged 'conspiracy' by others, and never 'fixed prices.'" Apple even acusses the government of...
Apple
Simon & Schuster reaches settlement in state ebook price-fixing lawsuit
Simon & Schuster settled almost immediately when the DOJ filed an antitrust lawsuit against five book publishers and Apple for alleged ebook price fixing. State litigation still loomed, however: 15 different states and Puerto Rico had filed their own suits against the companies, and while HarperCollins and Hachette reached quick agreements, Simon & Schuster was still in discussions. Those discussions appear to have reached a successful conclusion, with US District Court Judge Denise Cote...
Policy & Law
Steve Jobs wanted publishers to 'throw in with Apple' to create '$12.99 and $14.99' ebook market
As more US states join the class action suit against Apple and major publishers over ebook pricing, new details have emerged in an amended complaint, including a previously redacted email showing that Steve Jobs stepped in directly to help along negotiations. In the amended complaint, the states say that Apple mediator Eddy Cue could not secure commitment for the proposed agency model from one of the publishers, so Apple went over its head: Steve Jobs sent an email to an executive at the...
Did Apple's ebook sales model help lower costs for consumers by attacking Amazon?
The European Commission and US Department of Justice allege that Apple and several publishers have been collaborating to raise the price of ebooks, but The Wall Street Journal argues that if anything, Apple and others are trying by break Amazon's own monopoly on the ebook market. In the past couple of years, says L. Gordon Crovitz, "thanks to the agency model, the Kindle's market share has fallen to 60 percent [from 90 percent] thanks to competition from iPads and Barnes & Noble Nooks, and...
Apple
Apple eager to go to trial in ebook price-fixing lawsuit; three publishers settling state litigation
When the Department of Justice filed a lawsuit against Apple and five book publishers, alleging that they'd colluded to raise ebook prices, it didn't take long for the other shoe to drop: three publishers settled with the DOJ that morning. Apple and the remaining two publishers, however, have maintained their innocence, and it appears Cupertino is anxious to make its case in the courtroom. Reuters reports that Apple attorney Daniel Floyd told a US district court judge Wednesday morning that...
Policy & Law
Apple says ebook price fixing charges are 'simply not true,' that iBookstore broke 'Amazon's monopolistic grip'
Apple has just responded to the US Department of Justice's litigation over price fixing in the ebook market, telling AllThingsD in a statement that the "accusation of collusion against Apple is simply not true." Two days ago the US filed antitrust charges against Apple and five large book publishers, and while three of those publishers decided to settle with the government on the day the suit was filed, Apple, Macmillan, and Penguin have remain defiant. Here's Apple's full comment from...
Macmillan and Penguin: we've 'done no wrong,' DOJ may allow Amazon to 'recover the monopoly position' (update)
Three book publishers quickly settled this morning after news of the Department of Justice's ebook antitrust suit broke. One of the remaining publishers, Macmillan, has denied any wrongdoing, and company CEO John Sargent published an open letter today explaining the company's position. Stating unequivocally that Macmillan did not collude or engage in illegal behavior, Sargent portrays the company's decision to move forward with the agency model as his alone:
The government's charge is that...
Policy & Law
Inside the DOJ's ebook price-fixing case against Apple: an analysis
We just got our hands on the DOJ's antitrust complaint against Apple and seven major publishers, including HarperCollins, Penguin, Simon & Schuster, and Macmillan, and it's rather something: the government alleges that the publishing industry openly colluded to raise ebook prices and end Amazon's dominance, and that Apple was a willing participant in the scheme. What's more, the alleged conspiracy sounds like it was actually quite a conspiracy, with secret CEO meetings in private New York...
Web & Social
US sues Apple and publishers over ebook pricing, three publishers settle quickly (update)
Bloomberg is reporting that the US has filed an antitrust suit against Apple, Hachette, HarperCollins, Macmillan, and Penguin — confirming reports that the US Department of Justice would pursue the Apple and publishing companies over ebook pricing. The DOJ's actions come after a year-long investigation into Apple and publishers, after Apple switched to an "agency" model that is said to have resulted in an industry-wide price increase — with only a few sellers in the market setting prices....
DOJ poised to sue Apple over ebook price fixing: Reuters
Reuters is reporting that the US Department of Justice may sue Apple as soon as tomorrow morning, over allegations that the company was involved in an ebook price-fixing arrangement with five other major publishers of digital reading content. Late last month, it seemed that ebook publishers were ready to settle with the Department of Justice, but anonymous sources told the Wall Street Journal that only Simon & Schuster, HarperCollins and Hachette were actually inclined to settle as of last...
Ebook publishers anxious to settle antitrust probes as market booms
Of the five publishers accused of collusion over pricing of ebooks last month, three are inclined to settle the case, the Wall Street Journal reports. The allegations relate to Apple's terms and conditions of its iBooks store, which said that while publishers could set their own prices, the same books could not be sold cheaper anywhere else. This forced a change for other retailers, like Amazon, which was previously able to set its own prices, using cheaper ebooks to drive sales of its Kindle...
Apple
Apple and publishers reportedly near DOJ settlement over ebook pricing
Earlier this month it was reported that the Department of Justice was considering filing lawsuits against Apple and five different book publishers over allegations of collusion in connection with ebook pricing. Things may not end up coming to that, however, as Reuters reports that settlement talks between the different entities have been progressing, with a deal possibly a few weeks away. A key element of the proposed settlement is said to be the elimination of Apple's "most favored nation"...
Authors Guild President opposes DOJ lawsuit, paints Amazon's ebook monopoly as bigger threat
Apple may be preparing to defend itself from a potential antitrust lawsuit over alleged ebook price fixing, but now Authors Guild President Scott Turow is giving his two-cents on the situation — and he isn't mincing words when it comes to Amazon. In an open letter to Authors Guild members earlier this month, and more recently in a Bloomberg editorial, Turow is urging the Department of Justice to reconsider the possible antitrust suit against Apple and various publishers. He argues that...
Policy & Law
Apple defends itself over ebook price fixing allegations
With the US Department of Justice warning of future lawsuits over alleged ebook price-fixing, a separate court filing last week gives insight into how Apple may defend itself. In asking that a class action suit be thrown out, Apple claims that it's been made the victim of conspiracy theories and over-analysis of its public statements. In particular, speculation has mounted over the nature of comments made by Steve Jobs to Walt Mossberg before the launch of the iPad, where he presciently noted...
Policy & Law
US DOJ warns publishers, Apple that lawsuits are coming over ebook price fixing
The US Department of Justice's investigation into possible price fixing in the ebook space may soon turn into lawsuits. The Wall Street Journal reports that the DOJ has warned Apple and five major publishers that it will sue them for working together to raise the price of ebooks both on consumers and competitors like Amazon. At the core of the issue is the pricing structure that Apple chose when it launched iBooks — a standard "agency" model with a 30 percent cut for Apple. After the...
Policy & Law
US Justice Department also investigating Apple and others for ebook price fixing
We heard just yesterday that the European Commission was investigating possible ebook price fixing by Apple and five major book publishers, and now the US Department of Justice has confirmed that it's investigating the situation. (To be clear, the news is the confirmation, not the investigation — that's been rumored since last year.) Like the European investigation, the DOJ is interested in the "agency model" of selling books, whereby the publishers set the final prices and Apple takes a...
European Commission investigating collusion among ebook sellers, Apple's involvement
The European Commission has this morning announced that it is opening formal proceedings to investigate the sale of ebooks across the EU. Together with the British Office of Fair Trading, the Commission has already been taking an interest in the way digital books have been priced by publishers, and now that's been escalated to a fully fledged antitrust probe. Five publishers are named in the announcement, including HarperCollins, Penguin, and Simon & Schuster, though there's also a surprising...
