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Old 08-03-2010, 09:47 AM   #16
advocate2
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I think it makes sense to speak to Amazon first. Clearly they dragged their feet and the investigators can find out what pressure was placed on Amazon. Then go to Apple and ask how this new system got started. Was it at Apple's initiative or the publishers'?

If just one publisher had initiated the system and the others had not followed, there would be less push for an investigation. The real question from a legal perspective is, was it just coincidence that all five joined the new pricing system, or was there collusion? I don't believe in coincidence.
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Old 08-03-2010, 10:50 AM   #17
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The AG's probably found the pre-Price Fix online rumors that said *Apple* approached the publishers. Which may be true because the 70-30 split is also supposed to be the standard for iTunes and the App Store. Circumstantial evidence but still...
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Old 08-03-2010, 11:15 AM   #18
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Does this AG know that Kindle books sold via the Agency Model cartel are now generating income?
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Old 08-03-2010, 04:07 PM   #19
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Quote:
Originally Posted by advocate2 View Post
I think it makes sense to speak to Amazon first. Clearly they dragged their feet and the investigators can find out what pressure was placed on Amazon. Then go to Apple and ask how this new system got started. Was it at Apple's initiative or the publishers'?

If just one publisher had initiated the system and the others had not followed, there would be less push for an investigation. The real question from a legal perspective is, was it just coincidence that all five joined the new pricing system, or was there collusion? I don't believe in coincidence.
nice take on the situation.

Also, anyone else think the PF-5 knew this would happen but decided to go ahead anyway to take advantage of the market growth acceleration was at it's greatest knowing they would later have to withdraw the model and "maybe" pay a fine that will be nothing compared to the profit increases across the board. Basically employing the "...easier to ask for forgiveness than ask for permission..." school of thought. It just seems pretty transparent.

Also, Amazon's initial protest then eventual capitulation positions them as the only reseller who tried to stand up to the plan. My guess is that gives them the look of not being part of the "profit grab" cartel yet they still can reap the benefits of the new system as much as any other player.

Interesting to see the politics being played with something as fundamental as books and reading. As always, it's down to "follow the money" I suppose....very sad how things are anymore. Making a profit is never enough, it has to be ever increasing rate of profit growth...a completely unsustainable goal.
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