Inside the DOJ’s E-Book Price-Fixing Case Against Apple

Nilay Patel:

We just got our hands on the DOJ’s antitrust complaint against Apple and seven major publishers, including HarperCollins, Penguin, Simon & Schuster, and Macmillan, and it’s rather something: the government alleges that the publishing industry openly colluded to raise ebook prices and end Amazon’s dominance, and that Apple was a willing participant in the scheme. What’s more, the alleged conspiracy sounds like it was actually quite a conspiracy, with secret CEO meetings in private New York dining rooms and promises made to bosses up and down the chain.

I’m not sure what to think about this. Seems like the DOJ has a solid case on its hands, but before the iBookstore opened, Amazon had a stranglehold on the e-book market. Prices are higher today, but that’s because Amazon was selling those $9.99 Kindle titles at a loss.

★ Wednesday, 11 April 2012