Department of Justice Targets Publishers and Apple: E-Book Price Fixing?

By Karla Robinson
April 12, 2012

Apple and five publishers are facing lawsuits for their adoption of an agency pricing model, “where the vendor takes a 30 percent cut of each sale rather than the wholesale model which allows stores to sell books at rock-bottom prices,” reports Engadget.
Three of the publishers — Simon & Schuster, Lagardère SCA’s Hachette Book Group and HarperCollins — have already made settlements with the Department of Justice.
“Apple and Macmillian have already denied any wrongdoing, saying that the agreements were enhancing competition in an industry previously dominated by Amazon,” explains Engadget.
“If successful, the DoJ will allow Amazon and Barnes and Noble amongst others to return to the wholesale model to sell best-sellers at a loss, something that the big five are desperate to avoid, and will look to fight the battle in court,” adds the post.

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