[iJn]

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Barnes & Noble today accused the US government of solving the e-book price fixing controversy in a way that will harm the bookseller and result in higher prices for customers. Barnes & Noble also makes the argument that a settlement proposed by the US government will lead to "below-cost" pricing that could drive retailers like Barnes & Noble out of the e-book business.

Essentially, Barnes & Noble seems to believe that the DOJ settlement will lower book prices for a while, but ultimately reduce competition and end up raising the prices consumers pay.

"The end loser of this unnecessary and burdensome regulatory approach will be the American public, who will experience higher overall average e-book and hardback prices and less choice, both in how to obtain books and in what books are available," Barnes & Noble said.

Although Barnes & Noble argues that the settlement disrupts the agency model that has led to reduced pricing, another section of the filing claims that terminating agency agreements will lead to "below-cost pricing" driving competitors out of the market.

"By requiring that distributors set e-book prices and limiting the ability of publishers to do so, the proposed settlement consolidates pricing in a highly concentrated sector of the industry—instead of the unconcentrated, competitive sector of publishers," Barnes & Noble said. "Unable to compete with below-cost pricing, e-book distributors will drop from the e-book space."