08-04-2010, 09:03 AM | #1 |
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Conn AG targets Amazon and Apple for price-fixing
In June the Texas AG announced an investigation of Apple in regards to the agency price scheme. Now the Conneticut AG has started an investigation into Apple and Amazon.
"In a press realease issued Monday afternoon, the Connecticut AG's office said its concerns stemmed from "both Amazon and Apple [reaching] agreements with the largest e-book publishers that ensure both will receive the best prices for e-books over any competitors." As a result, per the AG, "these agreements appear to deter certain publishers from offering discounts to Amazon and Apple's competitors -- because they must offer the same to Amazon and Apple. This restriction blocks cheaper and competitive prices for consumers." http://www.dailyfinance.com/story/me...icut/19578924/ |
08-04-2010, 01:13 PM | #2 | |
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08-04-2010, 05:00 PM | #3 |
Orisa
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If you are reluctant to participate in a scam and you do it nonetheless, you ought to get punished too. Of course, it is normal that Apple, the maker of the whole mess, shall be punished harder than Amazon if this collusion is deemed as such.
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08-04-2010, 11:01 PM | #4 | |
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08-05-2010, 09:47 AM | #5 |
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I think the price fixing issue is that the Amazon and Apple contracts prohibit the publisher from offering a better deal to any other bookseller. So if, say B&N would agree to prebuy 10,000 copies of XYZ if the publisher would wholesale the book for $5 and let B&N sell the book for $6, Amazon and Apple would have to be given the opportunity to buy and sell the book at the same price, although not with the prebuy obligation. I believe this is at the root of the investigation, although (admittedly) I am not positive.
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