Should Apple settle the DOJ ebook price fixing lawsuit?

Discussion in 'iPad' started by EbookReader, Apr 25, 2012.

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Should Apple settle the DOJ ebook price fixing lawsuit?

  1. Yes

    38.1%
  2. No

    61.9%
  1. EbookReader macrumors 65816

    Joined:
    Apr 3, 2012
    #1
    Here's the term of the settlement from the 3 Publishers that have settled:

    http://news.cnet.com/8301-1023_3-57412592-93/whats-the-future-of-e-book-pricing/


    In a nutshell if Apple accepts the settlement:

    1) wholesale pricing like Apple is doing with digital music and digital movies on Itunes (buy ebooks at a negotiated price and Apple can sell it at any price it wants, similar to digital music and movies)

    or

    2) agency pricing but seller is allowed to discount their 30% cut (can't go below 0% on an aggregate level of the publisher's catalog)






    In Europe, Apple offers to settle:

    http://www.telegraph.co.uk/finance/...-in-Europe-but-will-fight-case-in-the-US.html

    Apple offers to settle ebook price fixing row in Europe but will fight case in the US






    This is in the Ipad forum because Apple launch the ibookstore when Ipad was launched. A lot of reading are done on Ipad so I feel this is the most appropriate forum. This forum also has a lot of traffic so that more people will vote on the poll.
     
  2. Aluminum213 macrumors 68040

    Aluminum213

    Joined:
    Mar 16, 2012
    #2
    $14.99 ebooks are way too much, especially when hard copies can be found cheaper


    Bring on $9.99 ebooks
     
  3. EbookReader thread starter macrumors 65816

    Joined:
    Apr 3, 2012
    #3
    That is not why there is a lawsuit. This is why:


    using 2 bestsellers as an example with current data:

    The Witness by Nora Roberts
    Penguin Publishing

    Kindle: $14.99 (forced to keep 30%)
    ibookstore: $14.99 (forced to keep 30%)
    Nook: $14.99 (forced to keep 30%)
    GooglePlay: $14.99 (forced to keep 30%)

    The Innocent by David Baldacci
    Hachette Book Group


    Kindle: $14.99 (forced to keep 30%)
    ibookstore: $14.99 (forced to keep 30%)
    Nook: $14.99 (forced to keep 30%)
    GooglePlay: $14.99 (forced to keep 30%)


    If sellers want to discount part of their 30% commission and pass this savings in the form of lower prices to customers, they should be able to.

    But they CAN'T. There is no competition among these sellers.

    If Google wants to sell "The Witness by Nora Roberts" for $10.49 (passing the whole 30% commission to the customers), why is Google being forced not to?
     
  4. EbookReader, Apr 27, 2012
    Last edited: Apr 27, 2012

    EbookReader thread starter macrumors 65816

    Joined:
    Apr 3, 2012
    #4
    In capitalism, retailers want the biggest mark up possible. Competition forces the mark up down. By setting a fixed percentage of mark up (30%), competition is eliminated.

    If a retailer only wants 10% or 15% mark up instead of 30%, why can't they? (especially when low mark up = low prices for the consumers)




    Take a look at Amazon MP3 and Itunes for best selling songs.

    Both buy wholesale at $0.91 per song (Somebody I used to know, We Are young, Glad You Came etc....)

    Itunes sell for $1.29 (for 30% mark up)
    AmazonMP3 sell for $0.99 (8% mark up)

    Competition works. Consumers benefit from lower prices.




    Why did the publishers insist that Amazon take the whole 30% when Amazon only want to take 10% (and pass the 20% mark up to the consumers in the form of lower prices?)
     
  5. thewitt macrumors 68020

    thewitt

    Joined:
    Sep 13, 2011
    #5
    No, they should not settle.

    They did nothing illegal, and they should go forward with the jury trial they have requested.
     
  6. EbookReader thread starter macrumors 65816

    Joined:
    Apr 3, 2012
    #6

    http://www.dailytech.com/Apple+Sued...fy+it+With+a+Public+Response/article24447.htm

    DOJ just need to prove that the agreement prevent "PRICE COMPETITION"

    The Witness by Nora Roberts
    Penguin Publishing

    Kindle: $14.99 (forced to keep 30%)
    ibookstore: $14.99 (forced to keep 30%)
    Nook: $14.99 (forced to keep 30%)
    GooglePlay: $14.99 (forced to keep 30%)

    If Amazon want to keep 10% and pass on 20% to consumers in the form of lower prices, but not able to....


    There is no price competition for ebook.
     
  7. thewitt macrumors 68020

    thewitt

    Joined:
    Sep 13, 2011
    #7
    Nonsense. Opinions will not settle this, only a judge and jury.

    I look forward to the trial.
     
  8. Capt T macrumors 6502a

    Joined:
    Mar 20, 2010
    #8
    In very simple terms. Since I am no legal expert. :)

    I thought the deal was that the publisher set the price... but that they could not have the price higher in the iBook store, than another digital download store. So if they wanted it to be $10 at amazon then the iBook store had to have it at $10, but if google books kept it at $14 and it was $10 in the iBooks store that was fine.

    In other words Apple didn't want them charging a premium to the consumer, just to get it in iBooks. They wanted lower prices if the price was lower anywhere else. It is the publishers who are not allowing anyone to lower the price.
     
  9. thatoneguy82 macrumors 68000

    thatoneguy82

    Joined:
    Jul 23, 2008
    Location:
    Beach Cities, CA
    #9
    I really hope so, these are electronic/data, not hardcopies. I prefer the iBooks format over the Kindle but the prices are just way too high for what it is. I'm glad the Kindle app has a pretty GUI, almost like iBooks.
     
  10. EbookReader thread starter macrumors 65816

    Joined:
    Apr 3, 2012
    #10
    Motive: (see below)
    End result: higher ebook prices and no price competition


    1) What is the publisher motive? (high ebook prices to protect print books)
    2) What is Apple motive? (don't want to compete with Amazon on prices because that would result in very low margin)

    Agency pricing with MFN clause will

    1) increase ebook prices (big plus for publishers)
    2) eliminate price competition (big plus for Apple)

    How to make Amazon agree to this?

    - Team up and tell Amazon if they don't accept, they won't be able to sell books from 5 of the 6 Big Publishers. Amazon can fight against 1 of 6 (it did fought back for 2 days against Macmillian before caving). But when the other 4 also told them if you don't switch to agency, we won't give you book to sell......Amazon caved.



    This was at the Ipad unveiling (a few months before the switch to agency).



    You can see the video of it here: (fast forward to around the 2 minutes mark)

    http://allthingsd.com/20100128/boom...arring-walt-mossberg-plus-a-steve-jobs-cameo/

    This will be used by DOJ.
     

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