Thursday, December 08, 2011

The E-book Investigations: Are Publishers And Apple Breaking The Law? | paidContent

Price different (see the link below for more details)

What’s the Problem with Agency Pricing?

The class action suits complain that agency pricing is an illegal cartel. Here is how one complaint describes it: “As a direct result of this anti-competitive conduct as intended by the conspiracy, the price of e-books has soared. The price of new best-selling e-books increased to an average of $12 - $15—an increase of 30 to 50 percent.”

Is Agency Pricing Against the Law?

For decades, it was illegal for manufacturers to impose prices on retailers. That’s why you used to see “Manufacturers Suggested Retail Price” on many items—companies could suggest a price but not impose one. This changed after a 2007 case called Leegin in which the Supreme Court said it wasn’t illegal for a handbag maker to control prices. Now, the analysis is done on a case-by-case basis to see if pricing is fair. In this case, the publishers are the manufacturers and Apple is the retailer.

The E-book Investigations: Are Publishers And Apple Breaking The Law? | paidContent

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