Monday, March 12, 2012

U.S. Justice Department May Sue Apple, Amazon Continues to Press Its Advantage

A month ago I noted that Amazon was under scrutiny for alleged predatory pricing practices, and this month it looks like they're not the only ones being investigated regarding e-book pricing. According to an article in last Friday's New York Times, the Justice Department is not only investigating Apple for alleged pricing collusion with e-book publishers, but antitrust officials are pressuring Penguin, Hachette, HarperCollins, Simon & Schuster, and Macmillan to reach a settlement as they threatened to sue them for working together to raise the price of e-books.

As if that's not enough to chew on, here are a couple of other developments with regard to the ever-expanding domination of Amazon:

A veteran publisher and author, James Atlas, goes to Amazon as an editor (and will no longer be accepting new publishing projects). Read about it here.


And, Amazon is flexing its muscles some more. You might remember the news at the end of last month that Amazon pulled over 4,000 titles from Chicago-based Independent Book Publisher Group when I.P.G. refused to lower its prices enough to suit Amazon. As one person interviewed for the article points out: “This should be a matter of concern and a cautionary tale for the smaller presses whose licenses will come up for renewal,” said Andy Ross, an agent and a former bookseller. “They are being offered a Hobson’s choice of accepting Amazon’s terms, which are unsustainable, or losing the ability to sell Kindle editions of their books, the format that constitutes about 60 percent of all e-books.” 
At the heart of this dispute is the issue of the relationship between the writer and the reader. Amazon executives are known for making the following statement:  "The only two essential parties in the reading experience are the reader and the author."


Really??? What about editors, marketers and distributors? Anyway, it continues to be a fascinating world of change with regard to e-publishing. Here's some of the inside scoop from that article.


What are your thoughts on the e-book pricing issue? It would be great to start compiling writers' opinions on these topics, wouldn't it? Chime in and let us know what you think.


~ Linda
p.s. no matter what I do I can't get Blogger to normalize the font size on the bottom part of this post. Oh, no—maybe I'm disappearing, like independent publishers who don't play ball with Amazon. . . 

8 comments:

  1. Wow, always something new to worry about, right? Ugh.

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  2. I'm following the news with interest. Thanks for the update!

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    1. You're welcome, Lydia. I can't not follow it. . .it's too (maybe) important.

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  3. I do kind of agree with Amazon's statement in here but, that's about where me agreeing with them ends. I don't like that they're attempting to monopolize publishing and push other publishers out of business. And the exclusive three months for their 'Kindle Select' disturbs me greatly.

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    1. How exactly does that three-month exclusive with Kindle Select work, Heather?

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  4. Linda, this is fascinating stuff here. The market is definitely changing. Free enterprise and competition... hmmm. Is there such a thing if on entity can control a market?

    The thought about the only two people involved... authors and readers. I would guess that's where we started. And then grew a business around that. I'm wondering if life just goes full circle. Perhaps quality will degrade if we cut out all the middle (wo)men and then there will be a need again.

    The industry needs to shift it's focus, and you gave me a great idea for a post this Friday. What the industry needs to do to take back control from this runaway market of "we will do it by ourselves!"

    Excellent post!

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    1. I can't wait to read your post on Friday, Karlene! Full circle, or at least full pendulum swing, does seem apt. Wouldn't it be great to be in the sweet spot where everyone does their best, with focus on the product and not who makes how much money? I would LOVE to see ideas on this subject. :)

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