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Amazon Gets Major E-book Victory in Court

APPLE GOT STUNG and so did HaperCollins, Hachette and Simon & Schuster when late last week U.S. District Judge Denise Cote approved a settlement with the three publishers accused of conspiring with Apple to fix prices against Amazon’s “agency model.”

From Politico:

With her ruling, Cote set in motion the termination of contracts between Apple and three of the nation’s largest publishers – HarperCollins, Hachette and Simon & Schuster – and placed control of pricing for e-books back in the hands of retailers, particularly Amazon. [...] Amazon, which released a new version of its Kindle e-reader Thursday, is set to be the biggest winner. The company’s dominance – it once controlled 90 percent of the e-books market and currently has an estimated 60 percent share – was what spurred Apple and a gang of publishers to develop a new business model for selling digital books, the Justice Department has alleged.

And that’s what gave rise in 2010 to the so-called agency model – a pricing structure government officials allege is intended to force Amazon to abandon its tactic of selling e-books for its Kindle e-reader on the cheap.

Thursday’s ruling is just the first chapter in what is expected to be a lengthy e-books antitrust battle between Apple and the Justice Department.
But experts say it clearly highlights how Apple and the five publishers tried to muscle Amazon into submission by designing a new pricing structure – and how they failed to topple the e-commerce company.

Apple states it will appeal the settlement, which Judge Cote found wholly unimpressive.

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One Response to Amazon Gets Major E-book Victory in Court

  1. Jane Austen September 10, 2012 at 10:17 am #

    I like it.

.... a writer is someone who takes the universal whore of language
and turns her into a virgin again.  ~ erica jong