(no subject)
There's a lawsuit filed on Apple and various book publishers accusing them of "Price fixing" for setting up the Agency model that prevented Amazon from deep discounting of their books.
Amazon didn't just push the price they sold their e-books down to act as a loss leader, they required the publishers to only accept a portion of the price that Amazon decided it should be sold at. Amazon were essentially using their monopoly power to fix the wholesale price of e-books, and force the publishers to take the loss when Amazon priced e-books as loss leaders to sell kindles.
Let's say that again... Amazon were using their monopoly power to force publishers to accept a loss in order to sell more kindles.
The idea that rejecting Amazon's monopoly abuse to move to a better market price is "price fixing" is flat absurd, and I expect this case to be thrown out on it's ear if that's all it's based on.
Amazon didn't just push the price they sold their e-books down to act as a loss leader, they required the publishers to only accept a portion of the price that Amazon decided it should be sold at. Amazon were essentially using their monopoly power to fix the wholesale price of e-books, and force the publishers to take the loss when Amazon priced e-books as loss leaders to sell kindles.
Let's say that again... Amazon were using their monopoly power to force publishers to accept a loss in order to sell more kindles.
The idea that rejecting Amazon's monopoly abuse to move to a better market price is "price fixing" is flat absurd, and I expect this case to be thrown out on it's ear if that's all it's based on.