which publishers set retail prices and distributors such as Apple receive a negotiated share of that retail price, similar to how the App Store operates
notice that Apple doesn't say how App Store and Itunes Store operate....because Itunes store for music and movies doesn't operate through agency. Apple use wholesale to sell music, movies. Apple buy these products at negotiated price and sell it at whatever price Apple want.
But since Amazon dominated ebook, Apple didn't want to compete fairly. So the best way to do this is to fix price and forced Amazon to raise its ebook prices.
Steve Jobs described Apple’s strategy in setting the retail price: “We’ll go to [an] agency model, where you set the price, and we get our 30%, and yes, the customer pays a little more, but that’s what you want anyway.”
Of course, the DOJ doesn't like it when companies get together and fix the retail price and file its lawsuit. Same thing happen in EU. Australia and Canada government is also looking into it.
notice that Apple doesn't say how App Store and Itunes Store operate....because Itunes store for music and movies doesn't operate through agency. Apple use wholesale to sell music, movies. Apple buy these products at negotiated price and sell it at whatever price Apple want.
But since Amazon dominated ebook, Apple didn't want to compete fairly. So the best way to do this is to fix price and forced Amazon to raise its ebook prices.
Steve Jobs described Apple’s strategy in setting the retail price: “We’ll go to [an] agency model, where you set the price, and we get our 30%, and yes, the customer pays a little more, but that’s what you want anyway.”
Of course, the DOJ doesn't like it when companies get together and fix the retail price and file its lawsuit. Same thing happen in EU. Australia and Canada government is also looking into it.