e-Book publishers shell out $69 million in price-fixing allegation case

Posted by Jason Diaz Categories: Apple, Corporate News

In the midst of Apple and ebook publishers collusion allegations brought forth by the Department of Justice (DoJ), Massachusetts Attorney General, Martha Coakley (Democrat), is tossing in her hat by filing a civil antitrust lawsuit. Three book publishers are shelling out over $69 million, $2 million of which is going to Massachusetts customers, to settle out of court. The ongoing lawsuit alleges that Apple got together with publishers and devised a plan to raise ebook prices in Apple's own iBookstore, which is in direct competition with Amazon's Kindle ebook store. Amazon is known for selling it's ebooks at rock-bottom prices, often at the expense of publishers and authors. So, although it appears that the DoJ's lawsuit greatly benefits consumers, who it really benefits is Amazon. Look at it this way: Amazon makes its lion share of money from many different sources, therefore, it can afford to sell ebooks at a loss since consumers buying through Amazon Kindle are exposed to advertisement promoting everything else they sell. Meanwhile, other booksellers are going out of business unable to compete, inadvertently creating a monopoly where Amazon reigns supreme. In the long run, who is this really benefiting? The way I see it, the DoJ lawsuit, although good intentioned, will eventually have the opposite effect of what its trying to achieve; and while now it appears to benefit consumers, in the end, Amazon wins.

Ebook publishers Macmillan and Penguin have not settled and Apple vowed to fight the allegations in court.

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