Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Digital Life
Fiercely productive scanners
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.


 Digital Life
1.   Amazon 3D Smartphone Pics Leaked
2.   Zebra Buys Motorola Enterprise Biz
3.   Google's Modular Phone Set for January
4.   CTIA Caves, Offers Kill Switch Plan
5.   Why Netflix Got So Blazingly Fast


advertisement
BlackBerry Drops T-Mobile After Spat
Moving on to other carriers after snub.
Average Rating:
Android Wear on Tap for Wearables
OK Google, what's really new here?
Average Rating:
Google, Viacom Settle Copyright Battle
Bury digital hatchet over YouTube.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
IBM Offers Security, Disaster Recovery as SoftLayer Service
New disaster recovery and security services for SoftLayer clients are being added by IBM. Big Blue said the new capabilities will speed cloud adoption by alleviating concern over business continuity.
 
How To Beat the Heartbleed Bug
Heartbleed headlines continue as IT admins scramble for answers no one has. Early reports of stolen personal data, including 900 social insurance numbers in Canada, are starting to trickle in.
 
After Heartbleed, OpenSSL Calls for More Support
The president of the OpenSSL Foundation says more support is needed from companies and governments that use its software so that it can better spot and fix flawed pieces of code such as Heartbleed.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Amazon 3D Smartphone Pics Leaked
E-commerce giant Amazon is reportedly set to launch a smartphone after years of development. Photos of the phone, which may feature a unique 3D interface, were leaked by tech pub BGR.
 
Zebra Tech Buys Motorola Enterprise for $3.45B
Weeks after Lenovo bought Motorola Mobility’s assets from Google for $2.91 billion, Zebra Technologies is throwing down $3.45 billion for Motorola’s Enterprise business in an all-cash deal.
 
CTIA Caves, Volunteers Kill Switch Plan
After bucking against the concept of a smartphone kill switch, the CTIA just announced the “Smartphone Anti-Theft Voluntary Commitment” to thwart smartphone thefts in the U.S.
 

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.