U.S. sues Apple, publishers over e-book prices—Amazon set to profit from it


The U.S. government is suing Apple and five major publishers, claiming they colluded to keep prices for e-books artificially high. Three of the publishers, HarperCollins, Hachette and Simon & Schuster, settled with the government immediately. Two others, Penguin and Macmillan, plan to fight the action along with Apple.

Analysts believe the main victor from the suit will be Amazon, which could now have overwhelming power in the e-book market.

From the NY Times:

“Amazon must be unbelievably happy today,” said Michael Norris, a book publishing analyst with Simba Information. “Had they been puppeteering this whole play, it could not have worked out better for them.”


Amazon which already controls about 60 percent of the e-book market, can take a loss on every book it sells to gain market share for its Kindle devices. When it has enough competitive advantage, it can dictate its own terms, something publishers say is beginning to happen.

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U.S. sues Apple, publishers over e-book prices—Amazon set to profit from it

  1. The thing about ebooks is that thus far you can download the apps and the books onto your laptop and read them from your laptop without ever buying a device be it Kindle, Sony e-reader or Kobo.  Therefore, right now you can take advantage of every e-book vendor.  You can also sign e-books out from your library and read them off your laptop.  There is no way that e-books should ever cost the same as hardcover or even paperback books.  It is not as though you buy and e-book and lend it out to your friends and family.  I have also heard that these publishers are trying to restrict the number of times libraries can “lend” out each e-book to 5 times.  You cannot tell me that a hardcover book (with repairs) only lasts that long.  If Amazon was really using unfair pricing practices to corner the market, the American govt. would be on them like they were on Microsoft a few years ago.  Really, what is Amazon doing any differently than Walmart?  They discount books too?

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