Originally Posted by Frood
Apple can sell ebooks to iPhone users and people trapped in the Apple ecosystem for 30% higher than the exact same ebook that Amazon and other competitors sell for 30% less. I have no problem with that at all. When Apple tries to raise prices for *everyone* by 30% by getting suppliers to agree to that, that is a problem.
"We can't tell you you can't sell anywhere else, but if you sell anywhere else for less than the price you have listed on the Apple ecosystem, we'll kick you out of our store."
Publishers would have loved this.
You seem to be making out like Apple was the bad one here. As you point out, the publishers were happy with this, there was no sense that Apple was forcing them to do anything.
"According to the complaint, the five publishers and Apple were unhappy that competition among e-book sellers had reduced e-book prices and the retail profit margins of the book sellers to levels they thought were too low. To address these concerns, the department said the companies worked together to raise retail e-book prices and eliminate price competition, substantially increasing prices paid by consumers.
Before the companies began their conspiracy, retailers regularly sold e-book versions of new releases and bestsellers for, as described by one of the publisher’s CEO, the “wretched $9.99 price point.” As a result of the conspiracy, consumers were typically forced to pay $12.99, $14.99 or more for the most sought after e-books, the department said."
Apple is helping the suppliers maintain the value of their own products. Amazon forces them to go against their will:
"“They decided they wanted me to change my terms,” said Mark Suchomel, president of the Chicago-based I.P.G. “It wasn’t reasonable. There’s only so far we can go.”
With each side unwilling to yield, Amazon pulled the plug, and all of I.P.G.’s books for Kindle disappeared. The physical books were not affected. A spokeswoman for Amazon declined to comment."
"Amazon.com removed more than 4,000 e-books from its site this week after it tried and failed to get them more cheaply, a muscle-flexing move that is likely to have significant repercussions for the digital book market.
Amazon’s decision to remove the digital titles was its most drastic such action since it briefly removed the physical books and the e-books published by Macmillan in a pricing dispute two years ago."
If they aren't allowed to set the prices of their own products at a level they are happy with, maybe they'll just decide to pull the plug on Amazon. They can sell direct on iOS and Android and Amazon gets nothing. Suppliers are eventually going to get fed up with retailers like Amazon dictating the value of their products.
Also people go on about Apple's 30%, authors/publishers only got 35% of their revenue before Amazon had any competition:
They changed it in 2010: