DOJ targets Apple and publishers for e-book price fixing
24.05.12
The six companies allegedly colluded in 2010 to force Amazon to raise its discounted e-book prices.
The Justice Department and three of the book publishers -- HarperCollins, Hachette and Penguin -- declined to comment. Representatives for the other companies named in the report did not respond to requests for comment.
Similar accusations of collusion have come up before. As Fortune reported , a lawsuit filed in California District Court last summer first alleged a conspiracy: Booksellers were "terrified" by the discounted e-book price structure Amazon launched in 2007, when it sold many titles for $9.99.
The spooked publishers went to Apple in 2010, the suit alleges, to find a way to force Amazon to raise its prices. The European Commission launched its own investigation , which seems to hinge on the same theory, in December.
The pressure worked. With the entire publishing industry pushing to set prices themselves, Amazon backed down in 2010 and allowed e-book prices to rise.
Source: CNNMoney