OFT launches investigations into ebook agency pricing

Grumpyreader · 02-01-2011, 04:47 PM

The Office of Fair Trading ("OFT"), which previously ruled the Net Book Agreement as being contrary to the Competition Act, has decided to launch an investigation in the Agency Model. This follows a "significant number of complaints", some of which will have come from MobileRead readers.

Whilst the OFT are at pains to state that an investigation doesn't automatically mean that they will find a breach has happened, it's a step closer to getting the agency model outlawed in the UK.

http://www.oft.gov.uk/OFTwork/compet...rrent/e-books/

jhempel24 · 02-01-2011, 04:49 PM

Oh wow! Power to the people! Lol. Things looking up? At least its out there.

ivers · 02-01-2011, 07:35 PM

Wow, nicely done! I hope this gets a lot of press.

Ravensknight · 02-01-2011, 08:27 PM

anybody, more knowledgeable than me [ie, everybody

], have any clues about how this might affect us in the United States?

GA Russell · 02-01-2011, 08:37 PM

Is the OFT a British institution, or is it EU?

Is the fact that the publishers' prices seem to be the same, suggesting collusion, something frowned upon in Britain/EU?

elcreative · 02-01-2011, 08:45 PM

OFT is UK and it doesn't approve of cartel/collusion operations... but it isn't exactly the fastest organisation in operation and investigation means just that, not a definite result either way...

Kali Yuga · 02-01-2011, 10:24 PM

Quote:

Originally Posted by Ravensknight

anybody have any clues about how this might affect us in the United States?

It won't.

Grumpyreader · 02-02-2011, 07:44 AM

This could be very good news or very bad. Even if the OFT decide the Agency Model is anti-competitive it might not cause prices to fall.

If the OFT finds that the practice isn't anti-competitive, nothing will change.

If the OFT finds that it is anti-competitive, this might cause the publishers to stop selling in the UK. Unlikely considering the growing size of the market but still possible...

The ideal is that the OFT finds that the Model is anti-competitive, the publishers agree to continue selling in the UK and that they allow retailers to reduce prices as they wish. This would only affect non-UK residents who managed to get around the geo-restrictions on buying from UK retailers.
There would be no obligation on any other nation's legislature (e.g. the two States in the US who are currently looking into it) to follow the OFTs decision as the OFT only have jurisdiction in the UK (and I'm not sure about Scotland)...

fjtorres · 02-02-2011, 08:30 AM

Quote:

Originally Posted by Grumpyreader

There would be no obligation on any other nation's legislature (e.g. the two States in the US who are currently looking into it) to follow the OFTs decision as the OFT only have jurisdiction in the UK (and I'm not sure about Scotland)...

But it would draw further attention on the price-fix scheme; at a minimum, the evidence gathered and opinion rendered will be available to other enforcement bodies. Depending on the rationale and legal underpinings a UK finding might lead to broader investigations and echoed findings.
Or not.
It's early in the fight.

The best protection, though, is to avoid buying books from the price-fix five. Period.
Just say no.
Support the publishers that support competitive pricing.

GeoffC · 02-02-2011, 09:29 AM

Quote:

Originally Posted by Grumpyreader

This could be very good news or very bad. Even if the OFT decide the Agency Model is anti-competitive it might not cause prices to fall.

If the OFT finds that the practice isn't anti-competitive, nothing will change.

If the OFT finds that it is anti-competitive, this might cause the publishers to stop selling in the UK. Unlikely considering the growing size of the market but still possible...

The ideal is that the OFT finds that the Model is anti-competitive, the publishers agree to continue selling in the UK and that they allow retailers to reduce prices as they wish. This would only affect non-UK residents who managed to get around the geo-restrictions on buying from UK retailers.
There would be no obligation on any other nation's legislature (e.g. the two States in the US who are currently looking into it) to follow the OFTs decision as the OFT only have jurisdiction in the UK (and I'm not sure about Scotland)...

Scotland is in the UK .... as are Wales, England and Northern Ireland.

The Isle of Man and the Channel Islands are not.

Worldwalker · 02-02-2011, 10:28 AM

Quote:

Originally Posted by Ravensknight

anybody, more knowledgeable than me [ie, everybody

], have any clues about how this might affect us in the United States?

The US long ago ceased frowning on "combinations in restraint of trade". I have actually seen it said, by governmental individuals, that monopolies are a good thing because they give the companies involved more money, which will then allow them to "innovate". This has led me to wonder who such people are getting paid by, since innovation has rarely if ever come from big, established companies whose markets are secure; it's always been the province of small, struggling companies that need a means to compete other than existing market dominance.

kennyc · 02-02-2011, 10:30 AM

Quote:

Originally Posted by Grumpyreader

The Office of Fair Trading ("OFT"), which previously ruled the Net Book Agreement as being contrary to the Competition Act, has decided to launch an investigation in the Agency Model. This follows a "significant number of complaints", some of which will have come from MobileRead readers.

Whilst the OFT are at pains to state that an investigation doesn't automatically mean that they will find a breach has happened, it's a step closer to getting the agency model outlawed in the UK.

http://www.oft.gov.uk/OFTwork/compet...rrent/e-books/

Wonderful!!

kennyc · 02-02-2011, 10:34 AM

Quote:

Originally Posted by Worldwalker

The US long ago ceased frowning on "combinations in restraint of trade". I have actually seen it said, by governmental individuals, that monopolies are a good thing because they give the companies involved more money, which will then allow them to "innovate". This has led me to wonder who such people are getting paid by, since innovation has rarely if ever come from big, established companies whose markets are secure; it's always been the province of small, struggling companies that need a means to compete other than existing market dominance.

The genesis of this of course was The Bell System which was a government sanctioned monopoly (with government controls on pricing) but that did create significant innovations and standards in the communications industry.

That doesn't mean it is true today....

rcuadro · 02-02-2011, 10:50 AM

I hope this does not backfire and they simply get rid or eBook on that side of the pond

Ravensknight · 02-02-2011, 10:53 AM

Quote:

Originally Posted by rcuadro

I hope this does not backfire and they simply get rid or eBook on that side of the pond

I can't see that happening. Too big a market. Publishers want that money, even if they have to get it in smaller increments than they do now.

02-01-2011, 04:47 PM	#1
Grumpyreader Connoisseur Posts: 53 Karma: 6000 Join Date: Sep 2009 Device: Sony PRS505, Kindle 2 Int.	OFT launches investigations into ebook agency pricing The Office of Fair Trading ("OFT"), which previously ruled the Net Book Agreement as being contrary to the Competition Act, has decided to launch an investigation in the Agency Model. This follows a "significant number of complaints", some of which will have come from MobileRead readers. Whilst the OFT are at pains to state that an investigation doesn't automatically mean that they will find a breach has happened, it's a step closer to getting the agency model outlawed in the UK. http://www.oft.gov.uk/OFTwork/compet...rrent/e-books/

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02-01-2011, 04:49 PM	#2
jhempel24 Wizard Posts: 2,157 Karma: 7068605 Join Date: Dec 2007 Device: Amazon Kindle Paperwhite, B&N Nook Colro	Oh wow! Power to the people! Lol. Things looking up? At least its out there.

02-01-2011, 07:35 PM	#3
ivers Junior Member Posts: 7 Karma: 168 Join Date: Apr 2008 Location: casa lucita, tx Device: nook wifi, ipod touch 4th gen	Wow, nicely done! I hope this gets a lot of press.

02-01-2011, 08:27 PM	#4
Ravensknight Serpent Rider Posts: 1,123 Karma: 10219804 Join Date: Jun 2009 Device: Sony 350; Nook STR; Oasis	anybody, more knowledgeable than me [ie, everybody ], have any clues about how this might affect us in the United States?

02-01-2011, 08:37 PM	#5
GA Russell Montreal wins Grey Cup! Posts: 7,583 Karma: 31484197 Join Date: Aug 2009 Location: Raleigh, NC Device: Paperwhite, Kindles 10 & 4 and jetBook Lite	Is the OFT a British institution, or is it EU? Is the fact that the publishers' prices seem to be the same, suggesting collusion, something frowned upon in Britain/EU?

02-01-2011, 08:45 PM	#6
elcreative Wizard Posts: 2,888 Karma: 5875940 Join Date: Dec 2007 Device: PRS505, 600, 350, 650, Nexus 7, Note III, iPad 4 etc	OFT is UK and it doesn't approve of cartel/collusion operations... but it isn't exactly the fastest organisation in operation and investigation means just that, not a definite result either way...

02-02-2011, 07:44 AM	#8
Grumpyreader Connoisseur Posts: 53 Karma: 6000 Join Date: Sep 2009 Device: Sony PRS505, Kindle 2 Int.	This could be very good news or very bad. Even if the OFT decide the Agency Model is anti-competitive it might not cause prices to fall. If the OFT finds that the practice isn't anti-competitive, nothing will change. If the OFT finds that it is anti-competitive, this might cause the publishers to stop selling in the UK. Unlikely considering the growing size of the market but still possible... The ideal is that the OFT finds that the Model is anti-competitive, the publishers agree to continue selling in the UK and that they allow retailers to reduce prices as they wish. This would only affect non-UK residents who managed to get around the geo-restrictions on buying from UK retailers. There would be no obligation on any other nation's legislature (e.g. the two States in the US who are currently looking into it) to follow the OFTs decision as the OFT only have jurisdiction in the UK (and I'm not sure about Scotland)...

02-02-2011, 10:50 AM	#14
rcuadro Wizard Posts: 1,686 Karma: 874275 Join Date: Nov 2008 Location: Virginia Beach, VA Device: Kindle DX	I hope this does not backfire and they simply get rid or eBook on that side of the pond

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