News
Apple, Amazon facing e-book pricing probe
By Charles Starrett
Senior Editor, iLounge
Published: Monday, August 2, 2010
News Category: Apple, Apps + Games
Connecticut Attorney General Richard Blumenthal has launched an investigation into Apple’s and Amazon’s deals with major book publishers. According to a press release released by Blumenthal, the deals both companies have signed with the major publishers may be anticompetitive; letters have been sent to both Apple (PDF Link) and Amazon requesting meetings to discuss and address these concerns. “These agreements among publishers, Amazon and Apple appear to have already resulted in uniform prices for many of the most popular e-books—potentially depriving consumers of competitive prices,” Blumenthal said. “Amazon and Apple combined will likely command the greatest share of the retail e-book market, allowing their most-favored-nation clauses to effectively set the floor prices for the most popular e-books. Such agreements—especially when offered to two of the largest e-book retail competitors in the United States—threaten to encourage coordinated pricing and discourage discounting.”
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