Go Back   nV News Forums > General Forums > Archived News Items

Newegg Daily Deals

Thread Tools
Old 07-18-12, 09:40 PM   #1
Registered User
Join Date: Jun 2009
Posts: 56,689
Post Senator says Apple e-books suit "could wipe out the publishing industry"

Senator Charles Schumer thinks it's time for Amazon's control over e-book prices to end.
Flickr user unten44

The US Department of Justice's lawsuit against Apple and a handful of e-book publishers "could wipe out the publishing industry as we know it," according to Senator Charles Schumer (D-NY). In an editorial published in the Wall Street Journal on Wednesday, Schumer argued that the lawsuit could make it more difficult for new authors to get published if Apple is forced to adopt Amazon's wholesale model for e-books, and that by moving forward with the suit, the DoJ is "[missing] the forest for the trees."

"If publishers, authors and consumers are at the mercy of a single retailer that controls 90% of the market and can set rock-bottom prices, we will all suffer," Schumer wrote in reference to Amazon, which completely dominated the e-book market until Apple introduced the iPad and its iBookstore in early 2010. "Choice is critical in any market, but that is particularly true in cultural markets like books. The prospect that a single firm would control access to books should give any reader pause."

The DoJ set its target on Apple, Hachette, Harper Collins, Macmillan, Penguin, Pearson, and Simon & Schuster in April of 2012 for allegedly colluding to fix e-book prices. At the time of the iPad's introduction of 2010, Apple also rolled out iBooks (and the iBookstore), a competitor to Amazon and its Kindle market. But unlike Amazon, Apple decided to allow publishers to use the so-called "agency model," which allowed them to set their own prices for e-books. Amazon's wholesale model allowed the company to sell e-books at prices below cost, a strategy that irked publishers because they felt Amazon was undercutting their prices and devaluing their products in the marketplace. Throughout 2010, publishers pushed Amazon to switch to the agency model as well, and eventually, it did.

Read 5 remaining paragraphs | Comments

News is offline   Reply With Quote

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

All times are GMT -5. The time now is 01:47 AM.

Powered by vBulletin® Version 3.7.1
Copyright ©2000 - 2015, Jelsoft Enterprises Ltd.
Copyright 1998 - 2014, nV News.