Quote:
Originally Posted by Graham
I think we've all understood what's really happening, in spite of the attempts by Apple and the opposing publishers to pretend this is about agency pricing.
The DoJ is not 'dictating a business model', they are dismantling a legal business model which was brought about by illegal collusion.
Graham
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Whether there was collusion is a matter for the courts to decide. The Defiant Ones may or may not prevail. What happened with the Settling 3 was that the DOJ insisted that they go back to the (in effect) wholesale model for the next 2 years because they believe that they had established the agency model through collusion. After that time, the DOJ will allow the Settling 3 to back to the agency model on a staggered schedule.
Now the DOJ has made it as difficult as possible to go back to the agency model, but long term I think that the BPHs will go back to the agency model. The wholesale model is just too dangerous for the publishers as long as there is a dominant retailer who can say, Sell me your product at MY price on MY terms or you won't sell squat."