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Posted by on Sep 7, 2012 in Companies |

U.S. Court approves agreement with publishers for collusion in prices of e-books

U.S. Court  approves agreement with publishers for collusion in prices of e-books

A federal judge agreed with three publishers who were being sued by the Justice Department in the for allegedly forming a to fix prices of e-books . Harper Collins, Simon & Schuster and Hachette chose to stick to the agreement, while MacMillan, Penguin and Apple, and possibly face trial on the issue next year.

The agreement implies that the three publishers should cancel their contracts with in a week. They must also cancel their contracts with other distributors containing restrictions on the ability of the dealer to fix the price of an e-book.

Apple established publishers with a model where each company can set the price that appears for each e-book, providing 30% of the sale value to the company. In a bookstore normal, the owner buys books in bulk, allowing you to sell the books at a price more convenient to buyers.

The DoJ ended accusing them of collusion by removing the ability to negotiate Prices to sellers of books. Under the agreement, the companies will not accept contracts that limit this ability to bookstores for two years.

The system caused a spike in prices, according to the DoJ, and prevented could sell their books to USD $9.99 as it had been doing. Internet company promised to lower prices again after this agreement.

On the other hand, critics of these measures indicate that the price declines could end up favoring Amazon, whose size is more likely to make better offers, possibly creating a monopoly.

Link: Judge approves settlement pricing e-book publishers and government Between (NYTimes)

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