U.S. Government Warns Apple and Publishers of Antitrust Lawsuit over e-Book Pricing

last december, u.s. department of justice acknowledged conducing antitrust investigation new "agency model" of e-book pricing championed apple ahead of ibookstore rollout, model in publishers set retail prices of books not sell them retailers other apple lower prices. similar investigation has been ongoing in europe well.

the wall street journal reports department of justice has warned apple , 5 e-book publishers intends file antitrust lawsuit against companies on matter, in companies alleged have colluded raise price of e-books.

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several of parties have held talks settle antitrust case , head off potentially damaging court battle, these people said. if successful, such settlement have wide-ranging repercussions industry, potentially leading cheaper e-books consumers. however, not every publisher in settlement discussions.

5 publishers facing potential suit cbs corp.'s simon & schuster inc.; lagardere sca's hachette book group; pearson plc's penguin group (usa); macmillan, unit of verlagsgruppe georg von holtzbrinck gmbh; , harpercollins publishers inc., unit of news corp. , owns wall street journal.

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many publishers happy sign on apple's agency model book pricing, seeking gain greater control of pricing content. after signing deals apple, turned amazon , other retailers, forcing them same arrangements threatening withhold books retailers.

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the justice department believes apple , publishers acted in concert raise prices across industry, , prepared sue them violating federal antitrust laws, people familiar matter said.

publishers have denied acting jointly raise prices. have told investigators shift agency pricing enhanced competition in industry allowing more electronic booksellers thrive.

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arguments agency model has increased competition center on amazon's dominant position in retail book industry, had sold books @ razor thin profits or losses in order attract customers broader shopping offerings. under agency model, greater price uniformity across retailers has allowed more companies competitive in marketplace.

article link: u.s. government warns apple , publishers of antitrust lawsuit on e-book pricing

 

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under agency model, greater price uniformity across retailers has allowed more companies competitive in marketplace.

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yes, isn't point of increasing competition reduce prices?

 

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