Initially the U.S. Department of Justice filed this lawsuit against Apple and five of the Big Six publishers (Random House didn’t agree to the initial iBookstore contracts). Over time, though, all five publishers settled with the Department of Justice, basically agreeing to terminate existing contracts with Apple and other ebook retailers, and renegotiate contracts that don’t prevent retailers from discounting ebook prices. However, retailers are not allowed to discount below the point of breaking even on a publisher’s works overall. In other words, Amazon can still discount titles below cost, but not to the extent of losing money on a particular publisher’s titles in their entirety.
From a practical standpoint, ebook retailers have gained price control again, and ebook prices have vacillated, dropping initially, then rising slowly. Plus, Amazon has started raising prices for scholarly and small-press books.
Why does no one seem to mention this? Why do they contend that Amazon is going to make boatloads of money but loosing boatloads of money against competitors with much deeper pockets?
Comments
Oh I thought it might have been bumped by something now deleted. Now I'm curious what has happened with that case.
This seems to be a pretty concise and rather balanced article of the case.. (http://tidbits.com/article/13912)
Oh I thought it might have been bumped by something now deleted. Now I'm curious what has happened with that case.
It's slowly ticking over.
On Tuesday the DoJ filed it's brief in response to Apple's appeal.
Today the US court of appeals in New York rejected Apple’s request to challenge the ruling before the class action trial set for 14 July.
?Here's the DoJ's 117 page brief.
http://www.scribd.com/doc/226771195/US-v-Apple-Appellees-Brief
What happened with the publishers?
Initially the U.S. Department of Justice filed this lawsuit against Apple and five of the Big Six publishers (Random House didn’t agree to the initial iBookstore contracts). Over time, though, all five publishers settled with the Department of Justice, basically agreeing to terminate existing contracts with Apple and other ebook retailers, and renegotiate contracts that don’t prevent retailers from discounting ebook prices. However, retailers are not allowed to discount below the point of breaking even on a publisher’s works overall. In other words, Amazon can still discount titles below cost, but not to the extent of losing money on a particular publisher’s titles in their entirety.
From a practical standpoint, ebook retailers have gained price control again, and ebook prices have vacillated, dropping initially, then rising slowly. Plus, Amazon has started raising prices for scholarly and small-press books.
Why does no one seem to mention this? Why do they contend that Amazon is going to make boatloads of money but loosing boatloads of money against competitors with much deeper pockets?