Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
Personal Tech
Tame your scariest paperwork. Find Out How
Average Rating:
Rate this article:  
Macmillan, Last Publisher Holdout on E-Books, Settles
Macmillan, Last Publisher Holdout on E-Books, Settles

By Barry Levine
February 8, 2013 1:33PM

    Bookmark and Share
The Macmillan settlement requires that the publisher provide advance notification of any e-book ventures to the Justice Department and that, for five years, it does not enter into any "favored nations" agreement that could undermine price competition. Macmillan must also allow e-book retailers to discount its titles. Apple is the last of the holdouts.
 



E-Books may be getting cheaper. On Friday, Macmillan announced it has settled with the U.S. Department of Justice over e-book price-fixing, becoming the last of the five targeted publishers to do so.

In April 2012, Justice sued Apple and five book publishers for conspiring to fix e-book prices. In addition to Macmillan, the publishers were Hachette, HarperCollins, Penguin, and Simon & Schuster. The suit, filed in a New York district court, alleged that Apple "facilitated the publisher defendants' collective effort to end retail price competition by coordinating their transition to an agency model across all retailers." Apple and the publishers denied the charges.

Under an agency model, publishers establish their own e-book prices, as opposed to a wholesale-retail model where publishers set the wholesale price and retailers set the final price for the consumer.

'Fundamentally Unfair'

The alleged arrangement occurred after Apple unveiled its first iPad in 2010, and publishers asked Amazon to raise their e-book prices. Amazon refused to do so, contending that e-book prices above $9.99 were too high, but Macmillan pulled titles and Amazon was forced to revise its prices. E-book best sellers subsequently rose to $12.99 and $14.99.

On the day that the Justice Department lawsuit was announced, Justice said it had settled with three of the publishers -- Hachette, HarperCollins, and Simon & Schuster. Apple and the other two publishers continued to fight on. In December, Penguin settled, so Macmillan was the last holdout.

Apple is still headed toward a trial, which is now set to start in June. Among other terms, the settlements require the publishers to end their current contracts with the technology giant. Apple said that nullifying its contracts, when it had not settled, was "fundamentally unfair, unlawful, and unprecedented."

'More Than the Entire Equity'

Apple has also accused Amazon of being behind the Justice Department investigation. There have been reports that more than a dozen Amazon employees have met with the agency, and some industry observers have suggested that the investigation and the subsequent settlements have now tilted the e-book pricing structure in favor of Amazon. Of course, by lowering prices, the settlements also tilt in favor of consumers.

The Macmillan settlement also requires that the publisher provide advance notification of any e-book ventures to the Justice Department and that, for five years, it does not enter into any "favored nations" agreement that could undermine price competition. Macmillan must also allow e-book retailers to discount its titles.

In a letter posted online, Macmillan CEO John Sargent said the company settled because "the potential penalties became too high to risk even the possibility of an unfavorable outcome." He said he received an estimate a few weeks ago of the "maximum possible damage figure."

Sargent said that he "cannot share the breathtaking amount with you, but it was much more than the entire equity of our company."
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Personal Tech
1.   LG Unrolls a TV Screen That Rolls Up
2.   MIT Finger Device Reads to the Blind
3.   Robot Writes Torah at Jewish Museum
4.   Review: Unlimited E-Book Services
5.   Alien Cast Members Reunite for Game


advertisement
Facebook Social Experiment Irks Us
Secretive test was legal, but ethical?
Average Rating:
Review: Huawei's Mate2 Impressive
Many features for a reasonable price.
Average Rating:
LG Unrolls a TV Screen That Rolls Up
Is there a purpose for such flexibility?
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Report: Chinese Hackers Hit U.S. Personnel Networks
Hackers from China broke into the computer networks of the U.S. Office of Personnel Management earlier this year with the intention of accessing the files of tens of thousands of federal employees.
 
Charges: Russian Stole Data from U.S. Restaurants, Zoo
A Russian man arrested on bank fraud and other charges hacked into computers at restaurants in Washington, hundreds of other retail businesses, and even the Phoenix Zoo, authorities say.
 
Another Month, Another IE-Focused Patch Tuesday
Microsoft rolled out 59 vulnerabilities for Internet Explorer in June. But the IE-patching party is not over yet. Redmond published six new security bulletins on Tuesday; two, critical; three, important.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.