The Government sides with monopoly, rather than competition, in
bringing this case. The Government starts from the false premise
that an eBooks “market” was characterized by “robust price
competition” prior to Apple’s entry. This ignores a simple and
incontrovertible fact: before 2010, there was no real competition,
there was only Amazon. At the time Apple entered the market,
Amazon sold nearly nine out of every ten eBooks, and its power
over price and product selection was nearly absolute. Apple’s
entry spurred tremendous growth in eBook titles, range and variety
of offerings, sales, and improved quality of the eBook reading
experience. This is evidence of a dynamic, competitive market.
These inconvenient facts are ignored in the Complaint. Instead,
the Government focuses on increased prices for a handful of
titles. The Complaint does not allege that all eBook prices, or
even most eBook prices, increased after Apple entered the market.