US Government Finally Realizes That Publishers & Apple Conspiring To Raise eBook Prices Is Price Fixing

from the well,-duh... dept

Almost exactly two years ago, when the big publishers, along with Apple, effectively forced Amazon to allow the publishers to jack up prices on ebooks, I noted that this looked like a classic case of price fixing. Apparently, the US government agrees -- and found enough evidence to go after the publishers and Apple for price fixing. There are settlement talks ongoing, but if they fall through, the government is likely to sue. This probably means that we'll start seeing some lower prices on ebooks. Of course, the stupid thing is that these super high ebook prices have probably hurt the market more than helped. Lots of indie authors have experimented with ebook pricing, and found that the sweet spot for maximizing revenue is often under $5. So while big publishers may have been getting more per sale, it seems likely they were leaving a ton of money on the table by limiting the size of their ebook market with prices that were just too high.

Filed Under: agency model, antitrust, ebooks, price fixing, pricing, wholesale
Companies: amazon, apple

Reader Comments

Subscribe: RSS

View by: Time | Thread

  1. icon
    Narcissus (profile), 12 Mar 2012 @ 1:19am

    Re: eBook price fixing

    Although I buy a big amount of books, I refuse to buy an e-book that is priced higher than the physical version. To me that's nonsense, whatever they spend on editing.

    And I agree with you fully that editing seems to be much sloppier now. I'm far from being a grammar nazi but in the average e-book you'll encounter a sizeable amount of grammmar- and spelling mistakes. It does take away from the experience...

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here

Subscribe to the Techdirt Daily newsletter

Comment Options:

  • Use markdown for basic formatting. (HTML is not supported.)
  • Remember name/email/url (set a cookie)

Follow Techdirt
Special Affiliate Offer

Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Report this ad  |  Hide Techdirt ads
Recent Stories
Report this ad  |  Hide Techdirt ads


Email This

This feature is only available to registered users. Register or sign in to use it.