Wednesday, April 11, 2012

Strange book-fellows.

So you'd maybe think I'd be against Amazon fixing prices with the publishers.

Actually, me and most independent book retailers would probably prefer that there be some sort of floor on pricing, if nothing else so that publishers may survive to continue to publish books.

I half wonder why Amazon is bothering. They could end up being the sole remaining large publisher -- if the Justice Department has it's way.

Thanks, but no thanks, for the favor.

6 comments:

yokem55 said...

The problem with Apple's deal with the publishers isn't that they went with an agency+commission
(As opposed to wholesale, which Amazon liked) model, it's that they and the publishers coluded on the pricing and Apple got themselves a most favorable price clause for making the change.

RDC said...

Notice that now that the court case has been filed Amazon has announced a price drop.

They are out to corner the e-book market.

So the Justice Department inprosecuting Apple for a technical violation of the anti-trust laws is helping to create an actual monopoly.

H. Bruce Miller said...

Wondering if B&N is going to match Amazon's prices for e-books. I think they pretty much have to or they're dead.

H. Bruce Miller said...

"So the Justice Department inprosecuting Apple for a technical violation of the anti-trust laws is helping to create an actual monopoly."

Price fixing is no mere "technical" violation. Although I have to agree with you about the likely ultimate outcome of this action.

RDC said...

I used the term technical because while they were working with a set of publishers on a pricing model that violated anti-trust laws their share of the market was very small compared to the bigger players. Which is probably why Apple is sticking to its guns and fighting the law suite.

When you get into specifics it does become very very technical in the determination if the law was broken. One might just as easily say that Amazon is breaking the law by selling books below cost in an effort to drive out competitiors. There are several specific hurdles which must be met.

yokem55 said...

One might just as easily say that Amazon is breaking the law by selling books below cost in an effort to drive out competitiors. There are several specific hurdles which must be met.
The thing is, Amazon's overall ebook business was (and still is) profitable. They only sold below cost on short term deals. Now they can operate a such a huge scale that they can get away with lower margins than anyone else can but that isn't dumping.