Thursday, April 12, 2012


Yesterday the Justice Department and 15 states sued Apple Inc. and major book publishers ( Hachette, Harper Collins,  Simon & Shuster, Holtzbrinck Publishers, Macmillan, Penguin Group) Wednesday, alleging a conspiracy to raise the price of electronic books they said cost consumers more than $100 million in the past two years by adding $2 to $5 to the price of each e-book.

Attorney General Eric Holder said executives at the highest levels of the companies conspired to eliminate competition among e-book sellers. Justice's antitrust chief Sharis Pozen said the executives were desperate to get, marketer of the Kindle e-book reader, to raise the $9.99 price point it had set for the most popular titles, which was substantially below their hardcover prices.

The government reached a settlement with three of the publishers, Hachette, HarperCollins and Simon & Shuster. But it will proceed with its lawsuit in federal court in New York City against Apple and Holtzbrinck Publishers, doing business as Macmillan, and The Penguin Publishing Co. Ltd., doing business as Penguin Group.

Will we finally see an end to those quirky little notes by prices on Amazon (PRICE SET BY PUBLISHER)? or will it cause a general price in crease across the board?

We'll see!!

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