On the Book Publishing Anti-Trust Settlement
As Michelle Dean points out on the Rumpus today, Monday is the deadline for public comments on the Consent Decree in the settlement of the United States’ anti-trust lawsuit against publishers and Apple for allegedly colluding to fix the prices of e-books they sold to Amazon.
Michelle’s piece mentions Ken Auletta’s piece in the June 25 issue of the New Yorker (available here behind the magazine’s paywall), which provides an excellent, readable summary of the case, and the settlements, and the stakes of both. It’s fascinating reading. After I read Auletta’s piece, I felt, for the first time, like I really understood DOJ’s case, and the publishers’ case against the case.
As Auletta explains, the five publishers who signed onto Apple’s agency model (which allowed publishers to set e-book prices at $15 but let Apple keep a 30% commission), didn’t do so to preserve their short-term profits. They were still selling e-books to Amazon at $15 per book, and they made less under Apple’s agency model.
They did it to try to save bookstores.
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