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Originally Posted by rhadin
Yes, I agree, it can be done. I think publishers can force the matter quite simply. They could refuse to sell both e and p books to Amazon at a discount or even at all. That might not be legal so my second suggestion is probably better.
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It's not just illegal - it's blatantly, spectacularly, promiscuously illegal.
From Sec. 1 of the Sherman anti-trust act (15 USC Sec. 1)
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Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $100,000,000 if a corporation, or, if any other person, $1,000,000, or by imprisonment not exceeding 10 years, or by both said punishments, in the discretion of the court.
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Note that the penalty for a corporation violating this is a fine not to exceed $100 million. Individuals face a max of $1 million plus up to 10 years in prison.
There is a civil action available as well, which is often used as well, especially in marginal cases. But people do go to prison for this every year - here's a link to a case from this year involving a $550 million fine.
http://www.financialfraudlaw.com/law...fine-ever/3266
My second suggestion is that they simply declare that their ebooks cannot be converted to or sold in any format other than ePub using, for example, the B&N-type DRM. Every ebookseller would have to sell only ePub ebooks with only that particular type of DRM. This would be procompetitive. In fact, I suspect that they could get a written waiver from the Department of Justice that permits them to agree to this standard because it would be consumer friendly.
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I don't think that would fly, either. It would be really hard sell to convince the Justice Dept. that it was for the benefit of consumers to stop selling e-books in the format that 65% of consumers already use. And even more difficult to convince them that this wasn't aimed at Amazon, given their public statements and most recent (alleged) price fixing wrt agency.
DoJ: So you are doing this because you think formats should be more open?
Big 6: Yes.
DoJ: And this doesn't have anything to do with Amazon?
Big 6: No.
DoJ: Openness is so important to you that you are willing to cut off 65% of your customers.
Big 6: Yes, we are all about openness.
I just don't see that working at all. I see a combination in restraint of (Amazon's) trade. And I think the DoJ would, too.
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If you take away Amazon's closed eco system, you force Amazon to compete on a more level playing field. Combine that with agency pricing, which is not under investigation (it is the collusion to impose agency pricing that is under investigation), and suddenly the marketplace changes dramatically.
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I think you and I have different ideas of what a level playing field is, since you are basically suggesting that the Big 6 get together and render all of Amazon's devices obsolete overnight.
And you think that the DoJ would go along with it? Because it would be friendly to consumers?