DOJ suing Apple over ebooks.

[DiapDealer]

Originally Posted by fjtorres

The three BPHs that have agreed to "settle" have agreed to nothing meaningful.
All they are doing is not contesting the terms and they agreed to terminate all contracts with Apple seven day after final judgment is rendered.

I'm seeing:

Under the settlements with the U.S. Justice Department filed today, the three companies agreed to cancel contracts with Amazon, Google Inc. (GOOG) and other electronic booksellers that allowed the publishers to set prices, according to the filing.

The settlement called for Simon & Schuster, Hachette and HarperCollins to hold off on entering into contracts for two years that would prevent retailers from discounting books, according to court papers.

It may not be much, but it sounds like something. And I didn't read anything that suggested it wasn't happening now.

[fjtorres]

From the filing:

"Defendants' ongoing conspiracy and agreement have caused e-book consumers to pay tens of millions of dollars more for e-books than they otherwise would have paid," the lawsuit said.

Obligatory Amazon Quote:

A spokesman for Amazon said in a statement that "This is a big win for Kindle owners, and we look forward to being allowed to lower prices on more Kindle books."

[Kali Yuga]

It's not a "maybe," it's a "definite." Apple + 5 publishers are getting sued.

http://mediadecoder.blogs.nytimes.co...ok-pricing/?hp

Full text of the suit is attached, for the law geeks.

The DOJ is suing Apple, Hachette Book Group, HarperCollins, Macmillan, Penguin Group USA and Simon & Schuster over the adoption of agency pricing.

It looks like agency pricing itself is not the issue -- as indicated by Random House adopting agency pricing months after the other publishers.

My guess at this time is that if they don't settle, it'll take 2-3 years for the case to be finalized. Everyone will get a fine (i.e. big slap on the wrist), Apple's guarantee of "no one gets a lower price than us" will be tossed out, retailers will be allowed some latitude with discounts and... agency pricing will continue. I guess we'll see in 2-3 years.

[JoHunt]

The settlement called for Simon & Schuster, Hachette and HarperCollins to hold off on entering into contracts for two years that would prevent retailers from discounting books, according to court papers.

This is a tremendous victory for consumers, no matter how you look at it.

[fjtorres]

Originally Posted by DiapDealer

It may not be much, but it sounds like something. And I didn't read anything that suggested it wasn't happening now.

The WSJ hasn't changed their report yet and theirs is a direct quote.
Maybe those cancellations are unilateral?
"We didn't know it was illegal! Why, we even stopped it as soon as they put a gun to our head!"

Would be nice if *something* happened before final appeal.

Edit: Ah, the terms apply after the *settlement* is approved by the presiding court. So, no; nothing immediate. But we might see something before 2025.

[stonetools]

[QUOTE]It is also hard to settle a lawsuit when you know you have done no wrong. The government’s charge is that Macmillan’s CEO colluded with other CEO’s in changing to the agency model. I am Macmillan’s CEO and I made the decision to move Macmillan to the agency model. After days of thought and worry, I made the decision on January 22nd, 2010 a little after 4:00 AM, on an exercise bike in my basement. It remains the loneliest decision I have ever made, and I see no reason to go back on it now.[/QUOTE]

If that is true, Apple and Mcmillan win out right, regardless of what happens to the other publishers or whether you believe his reason for going agency. The timeline supports the idea that Mcmillan decided to go agency alone.

[Kali Yuga]

Originally Posted by joehunt

This is a tremendous victory for consumers, no matter how you look at it.

Even if it results in Amazon's market share in ebooks rising from 60% to 75%? Or 80%?

[DiapDealer]

If that is true, Apple and Mcmillan win out right, regardless of what happens to the other publishers or whether you believe his reason for going agency. The timeline supports the idea that Mcmillan decided to go agency alone.

A timeline that includes "I was all alone in my basement riding my exercise bike with a tear in my eye when I made the decision" is hardly evidence that he was all alone in his basement riding an exercise bike with a tear in his eye when he made the decision; now is it?

[stonetools]

Originally Posted by joehunt

This is a tremendous victory for consumers, no matter how you look at it.

Note that agency pricing can come back after two years is up. Note also that the publishers can set the wholesale prices. I'm not sure it will be all that much a victory.

[JoHunt]

Originally Posted by Kali Yuga

Even if it results in Amazon's market share in ebooks rising from 60% to 75%? Or 80%?

Yes. All ebook sellers will benefit and we, as consumers, will no longer have to put up with this nonsense from booksellers being able to offer discounts on everything except ebooks.

[Kali Yuga]

Originally Posted by stonetools

Note that agency pricing can come back after two years is up. Note also that the publishers can set the wholesale prices. I'm not sure it will be all that much a victory.

It's not even clear yet if agency pricing has been cancelled. It's possible that Apple's "most favored nation" status is cancelled and discounting allowed, while publishers can still set prices and the retailer's cut.

[DiapDealer]

Note also that the publishers can set the wholesale prices.

They always could.

[Kali Yuga]

Originally Posted by joehunt

Yes. All ebook sellers will benefit and we, as consumers, will no longer have to put up with this nonsense from booksellers being able to offer discounts on everything except ebooks.

So I take it you haven't heard all the complaints about Amazon bullying indie publishers and otherwise threatening to bring an end to all literary life on earth?

[howyoudoin]

Originally Posted by Kali Yuga

Even if it results in Amazon's market share in ebooks rising from 60% to 75%? Or 80%?

Co-relation does not imply causation. There is no reason to believe that agency-pricing was the cause of the decline in Amazon's market share, or that it's removal will result in a reversal.

[kennyc]

Originally Posted by Kali Yuga

Even if it results in Amazon's market share in ebooks rising from 60% to 75%? Or 80%?

Yes.


.