Quote:
Originally Posted by stonetools
I think that its important to go over what actually happened when agency pricing was inntroduced, rather than the myth of what happened.
1. In January 2010 or thereabouts, Steve Jobs suggests to the publishers that they adopt agency pricing.
(snip)
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Somewhere after the "suggestion," Apple required that a "most favored nations" clause be included in the agreement. Some
discussion of that:
Quote:
...Around that same time, the publishers were negotiating with Apple about providing books for the forthcoming iPad. The ultimate deals employed the agency model and included a “most favored nations” clause that prevented the publishers from selling their goods to other retailers for lower costs.
The publishers leveraged Apple’s big new sales channel and these deal terms to force others sellers, including Amazon, to adopt the agency model, in a way that the DOJ and others allege constitutes price collusion.
“A radical, structural industry change took place in one fell swoop when the light turned on for the iPad,” said Jeff Friedman, a partner in the Berkeley office of Hagens Berman Sobol Shapiro, a law firm serving as co-lead counsel in the consolidated New York case. “All prices went up 30 to 40 percent for the five agency publishers. That is not something that happens coincidentally.”
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During the negotiations, there's a strong possibility that some of publishers may break ranks and reveal more information in hopes of leniency. At any rate, it's very likely the DoJ has evidence that won't be revealed unless the case goes to court. That's another reason that the publishers and Apple will want to settle.