For years, Amazon has used its size and market power to bully publishers and keep other retailers from competing in the e-book market. And, for years, the U.S. Department of Justice (DOJ) has done nothing to constrain Amazon’s abuses or bring about a more competitive marketplace. So it was quite a shock last month when the … Read More
After winning a high-stakes standoff against Amazon last year, publishers are now setting the prices that retailers can charge for their e-books.
At first blush, one might assume that such price-fixing would result in higher prices. But the evidence from more than a dozen European countries, where laws have long prohibited selling both print and electronic books below a set price, clearly shows that publisher-mandated pricing saves consumers money. It also fosters a more lively and competitive book industry, with far more books published and many more independent bookstores open than in countries where big retailers control pricing.… Read More