DOJ files ebook price fixing lawsuit against Apple
Posted 11 April 2012 - 08:01 AM
Apple's pricing is very simple: Its your product so you set the selling price and pay Apple a 30% commission. You may not wholesale to anyone at a price lower than you give to Apple else Apple will quit carrying your product. No one is holding a gun to your head forcing you to do business with or through Apple. The only reason you do business with Apple is because it is to your profit.
I think it is Amazon who is the price conspirator here. It is Amazon who sets their own selling prices. If Amazon is willing to take less than 30% then Apple's market share is theirs for the taking.
Posted 11 April 2012 - 08:14 AM
Maybe Amazon raised some prices, but plenty of stuff is still $9.99 and much less.
They don't have a case.
Nothing in all the world is more dangerous than sincere ignorance and conscientious stupidity. - Martin Luther King, Jr.
Posted 11 April 2012 - 09:30 AM
Oh come on. Where have you been? Amazon was trying to convince publishers that they should sell ebooks at a lower price since the costs of an ebook were lower than a printed book (no shipping, no storage, no returns, etc.)
Then the big 5 met with Apple and they set up a way to raise prices and if Amazon wanted to sell those books they would have to agree with the prices.
After that the big 5 decided to eliminate or seriously restrict ebook sales to libraries.
When Amazon was selling 9.99 books they were taking a loss, not the publishers.
Publishers cliam they are selling content not format and the price should be the same. I'd agree if the content in an ebook were the same, but it isn't. Typos from bad conversions abound.
Posted 11 April 2012 - 09:31 AM
Posted 11 April 2012 - 09:51 AM
Where is this magical place? It sounds exactly like ... America! (Except for the lack of access to malls ...)
Posted 11 April 2012 - 11:22 AM
Seriously, this prosecution is unique and seems to have a unique idea of "price-fixing."
Amazon is portrayed as the friend, friend, friend of content, but they're the ones lowering the prices unilaterally. (Much like the music in the Apple Store. Amazon got their mp3s cheaper than Apple for a year or two because Jobs insisted on fixing the price at 99c for every track. So eventually, Jobs relented and allowed the labels to special-price and promote and all those things. Boom, all the labels cut DRM.
No lawsuits from the DoJ about that. No "price-fixing" prosecutions there. The record biz wanted to control its price, and that meant it would be cheaper, and free of copy restrictions, until Apple caved slightly. Amazon was effectively doing that. Bribes and threats. Bidness. But the labels got the higher price they wanted from Apple. And Amazon colluded in the secret strategy.
Amazon is among many other digital companies, most obviously the cable providers, who have to be aware of the conflict between publisher and wholesaler. Maybe those two roles should be performed by different players.
Posted 11 April 2012 - 05:39 PM