European Union ends antitrust probe into e-book pricing
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European Union ends antitrust probe into e-book pricing

European Union regulators ended an antitrust probe into e-book prices on Thursday, accepting an offer by Apple and four publishers to ease pricing restrictions on Amazon and other retailers.

The decision "hands online retailer Amazon a victory in its attempt to sell e-books cheaper than rivals in a fast-growing market publishers hope will boost revenue and customer numbers," according to "Reuters" (http://macte.ch/zBZ4v). The European Commission said the concessions from Apple and the publishers soothed concerns that their pricing deals curbed competition.

Apple has been sued in Europe, the U.S. and Canada for collaborating with publishers to "fix" ebook prices. The brouhaha centers on Apple's move to change the way that publishers charged for e-books as it prepared to introduce its first iPad in 2010. Traditionally, publishers sold books to retailers for roughly half of the recommended cover price. Under that "wholesale model," booksellers were then free to offer those books to customers for less than the cover price if they wished.

Apple suggested moving to an "agency model," under which the publishers would set the price of the book and Apple would take a 30% cut. However, Apple also insisted that publishers couldn't let rival retailers sell the same book at a lower price.

 

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