Apple E-Book Price Fixing Decision Could See Return of Direct Links from Kindle and Other Apps to Their Stores

[MacRumors]

The U.S. Department of Justice today announced its proposed remedy in the e-book price fixing case that saw Apple found guilty last month. The proposed remedy includes nullification of Apple's existing "agency model" deals with a number of major publishers, as well as a requirement that competitors such as Amazon allow direct links to their own e-book stores from within their iOS apps.

The department's proposal, if approved by the court, will require Apple to terminate its existing agreements with the five major publishers with which it conspired - Hachette Book Group (USA), HarperCollins Publishers L.L.C., Holtzbrinck Publishers LLC, which does business as Macmillan, Penguin Group (USA) Inc. and Simon & Schuster Inc. - and to refrain for five years from entering new e-book distribution contracts which would restrain Apple from competing on price. [...] To reset competition to the conditions that existed before the conspiracy, Apple must also for two years allow other e-book retailers like Amazon and Barnes & Noble to provide links from their e-book apps to their e-bookstores, allowing consumers who purchase and read e-books on their iPads and iPhones easily to compare Apple's prices with those of its competitors.

Back in February 2011, Apple rolled out in-app subscriptions, also instituting a new App Store rule preventing developers offering both subscription and purchased content from including in their apps direct links to their own stores that would allow user to bypass Apple's in-app purchase system. Amazon complied with the requirement by removing links from its Kindle app in July of that year, and Barnes & Noble made a similar move with its NOOK app.

Under the proposed remedy, Apple would be required to allow those direct links to return to competitors' apps for a period of two years. A hearing on the proposed remedies is scheduled for August 9.

Article Link: Apple E-Book Price Fixing Decision Could See Return of Direct Links from Kindle and Other Apps to Their Stores

 

[RobertMartens]

Amazon will be required to have a monopoly. Not to worry. Apple has moved the game along sufficiently. It will be difficult to go back. eBooks will soon be left in the wake of iBooks.

 

[6749974]

Finally. I would be happy to see in-app purchases happen.

 

[ck2875]

Simple Fix to Piss off the Judge: Reject the Kindle App for Some Other Issue.

 

[mudman2]

Reject them all

 

[err404]

This would be terrible. I don't want to enter my CC info for every app that has IAP. I think having a unified payment method through the App Store adds significantly to the user experience.

 

[ck2875]

This would be terrible. I don't want to enter my CC info for every app that has IAP. I think having a unified payment method through the App Store adds significantly to the user experience.

Well it also opens Pandora's Box of Devs offering free apps then using their own IAP system to avoid paying their fair share to Apple.

 

[bbeagle]

Simple Fix to Piss off the Judge: Reject the Kindle App for Some Other Issue.

Simply require the every Books app to have the iBooks in-app purchase link as well as the link to the kindle web page.

And if the Kindle link is clicked, have iOS give this warning message:
WARNING: Books purchased through this method will not be stored in the Apple Cloud, thus could be lost. Apple cannot guarantee that your credit card information will not be stolen using a 3rd party link. Use at your own risk.

A simple WARNING message is not beyond what the Judge said, and will deter a lot of people from using the Kindle link.

 

[mazz0]

Well it also opens Pandora's Box of Devs offering free apps then using their own IAP system to avoid paying their fair share to Apple.

Not if it only applies to eBooks, although I suppose policing that will take some effort.

On the whole, I dislike anything that gives Amazon more power.

 

[bandalay]

Monopoly treatment…

for a non-monopoly.

 

[jumanji]

Amazon will be required to have a monopoly. Not to worry. Apple has moved the game along sufficiently. It will be difficult to go back. eBooks will soon be left in the wake of eBooks.

no joke...this is insane. monopolies are against the law but they're practically mandating one here...

 

[Gaspode67]

This would be terrible. I don't want to enter my CC info for every app that has IAP. I think having a unified payment method through the App Store adds significantly to the user experience.

I doubt you would have to. Take the Kindle App for example. At the moment, if you install the Kindle App, then it's already tied to your Amazon account. All you would need to do is allow a link through to the store. After all, that's how it already works if you have, say, a Kindle Paperwhite or the Kindle App installed on your Android phone. You don't have to enter in your CC details, as they are already linked to your Amazon account.

And I have yet to hear any clear and logical reason why Apple would "deserve" a cut of any book purchased through the Kindle App. What service has Apple provided at any stage of that transaction? Have they provided the ebook? No. Have they processed the transaction on behalf of Amazon? No. Have they provided the network infrastructure for the transfer of the file? No.

 

[Rogifan]

As if the US government didn't have more important things to worry about.

 

[gibbz]

Just reject the apps. Why should Apple be forced to offer free infrastructure to Amazon so that Amazon can further the reach of their own store?

 

[Ed91]

Apple must also for two years allow other e-book retailers like Amazon and Barnes & Noble to provide links from their e-book apps to their e-bookstores, allowing consumers who purchase and read e-books on their iPads and iPhones easily to compare Apple’s prices with those of its competitors

I'm no lawyer, but I don't think this would affect in app purchases. My interpretation is that Apple just has to allow competitors to link to their stores so customers can compare prices - not link to specific books for purchase.

 

[JayJayAbels]

Insane. That's like having a link to iBooks in every Amazon app.

No way this will happen. It breaks the ecosystem. Apple will never permit this.

 

[0x0x0x0]

no joke...this is insane. monopolies are against the law but they're practically mandating one here...

I don't know how things are state-side, but in the EU, so far as I can remember from EU-law, monopolies are fine, abuse of a monopolistic position is not...

 

[samcraig]

As if the US government didn't have more important things to worry about.

This is a silly comment. Sorry - but whether you agree with the ruling, etc is one matter. There are, of course, ALWAYS more important/pressing matters. But that also doesn't negate the need to rectify others...

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Insane. That's like having a link to iBooks in every Amazon app.

No way this will happen. It breaks the ecosystem. Apple will never permit this.

Amazon used to have this in their apps before Apple changed their rules. How would it break the ecosystem?

And I imagine - if Apple created an iBooks app and offered it on the Amazon App Market - Amazon would accept it.

Now what are the odds Apple would ever?

 

[0x0x0x0]

Insane. That's like having a link to iBooks in every Amazon app.

No it's not- read what is required: for two years allow other e-book retailers like Amazon and Barnes & Noble to provide links from their e-book apps to their e-bookstores

It's like Amazon allowing Apple to place an App on Amazon with a link to iBookstore...

 

[FakeWozniak]

If I recall right, the old deal was for Apple to get 30% from in-app purchases, so that could be a good deal, maybe.

 

[UnfetteredMind]

Life will go on and things will adjust ... and then the government can later get money from Amazon for having a monopoly. It'll all work itself out.

 

[Gaspode67]

And if the Kindle link is clicked, have iOS give this warning message:
WARNING: Books purchased through this method will not be stored in the Apple Cloud, thus could be lost.

Because you can only download a book once from Amazon to one device. Oh wait....

Apple cannot guarantee that your credit card information will not be stolen using a 3rd party link. Use at your own risk.

A simple WARNING message is not beyond what the Judge said, and will deter a lot of people from using the Kindle link.

As I pointed out above, on other mobile platforms with the Kindle App, you don't enter your CC information for the purchase, Just your Amazon Account and Password, so it's no different to using your AppleID to purchase music from the iTunes store.

Just reject the apps. Why should Apple be forced to offer free infrastructure to Amazon so that Amazon can further the reach of their own store?

What infrastructure has Apple supplied here above and beyond allowing Amazon to sell their App? Apple's systems and servers would not be used to process the transaction or transfer the file.

 

[JayJayAbels]

This is a silly comment. Sorry - but whether you agree with the ruling, etc is one matter. There are, of course, ALWAYS more important/pressing matters. But that also doesn't negate the need to rectify others...

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Amazon used to have this in their apps before Apple changed their rules. How would it break the ecosystem?

And I imagine - if Apple created an iBooks app and offered it on the Amazon App Market - Amazon would accept it.

Now what are the odds Apple would ever?

Yeah that's breaking (or at least changing) the ecosystem.

 

[charlituna]

Simply require the every Books app to have the iBooks in-app purchase link as well as the link to the kindle web page.

And if the Kindle link is clicked, have iOS give this warning message:
WARNING: Books purchased through this method will not be stored in the Apple Cloud, thus could be lost. Apple cannot guarantee that your credit card information will not be stolen using a 3rd party link. Use at your own risk.

Except that Kindle has its own cloud and Apple can't promise no one will ever hack yr account and get yr credit card.

Frankly I think if the point is to allow folks to compare prices then let them post the current price. But nullifying the IAP rule is opening up a storm of developers claiming special treatment and that negates one of the things that was in Apple's favor -- big or small everyone plays by the same rules. Since this is an iBooks store issue screwing with the App Store feels like over stepping.

Also hands off the agency model. If Apple and the publishers are happy with those terms then let them be happy with it. The issues were the MFN and the alleged forcing of Amazon etc into the same terms. So null those contracts or allow the other retailers to do so and require whatever terms they want. But if the publishers don't agree with the terms, they have a right to not disagree. Which means Amazon could lose some titles. Also null any retailer being able to force 'exclusive' deals where no other store can have a title. And let 'sales' of a title to 4 weeks. After that, MFN style rules kick in and all over retailers can drop their price to that amount.

Oh wait that would screw with Amazon's right to return to their monopoly and predatory practices. Can't have that.

Perhaps what we need is a law suit against Amazon, starting with those exclusive titles. In books, TV and movies. Then we can work on the pricing issue

 

[FakeWozniak]

Simple Fix to Piss off the Judge: Reject the Kindle App for Some Other Issue.

I 'liked' your comment, but that is also called contempt of court, IIRC.
I suspect the court will be looking for dick moves like that, so I think Amazon has a little extra opportunity to push the limits with Apple here.