WWDC rumor roundup: Retina display Macs, iCloud photo sharing, new iOS Maps

  • Apple designer Jonathan Ive says current projects are his 'most important' work

  • Apple said to be ordering 4" screens for next iPhone

  • Apple's iPad plays crucial role in Greece's debt restructuring

  • Free Overnight Shipping on all Macs. Save up to $612 on MacBook Pros: Mac Price Guide updated May 25th. (Find the best prices on Macs)
    Tuesday, August 9, 2011

    Apple, publishers sued over e-book pricing as sales jump

    By Josh Ong

    Published: 09:35 PM EST (06:35 PM PST)


    Apple and five of the six largest publishing houses have been sued in a class action suit accusing them of illegal price fixing via the agency model, while a new survey shows e-book sales have risen by more than 1000 percent over the past two years.

    Seattle-based law firm Hagens Berman filed a class action law suit against Apple, Hachette, Simon & Schuster, Macmillan, HarperCollins and Penguin on Thursday, PaidContent reports. The companies are accused of conspiring to adopt the agency model in order to “boost profits and force e-book rival Amazon to abandon its pro-consumer discount pricing."

    Random House, the only "big 6" publisher not included in the suit, resisted the agency model at first, though it has since adopted it. The publisher began offering its books for sale on the iBookstore in March of this year.

    The agency model allows publishers to set their own pricing while providing the seller with a portion of the revenue. Apple pushed to adopt the model for its iBookstore, which launched last year alongside the iPad. The company currently receives the same 30 percent cut that it first offered to developers selling software on the App Store.

    According to the law suit, Amazon's Kindle had "the potential to massively reduce distribution costs historically associated with brick-and-mortar publishing." However, publishers were allegedly threatened by the new business model and sought to coordinate their activities with Apple in an effort to "restrain trade and retard innovation."

    "Being hidebound and lacking innovation for decades, the publishers were particularly concerned that Amazon’s pro-consumer pricing of eBooks would negatively impact their moribund sales model, and in particular the sale of higher priced physical copies of books,” the complaint read.

    The suit goes on to claim that “Apple facilitated changing the eBook pricing model and conspired with the Publisher Defendants to do so” because “the Kindle was (and is) a competitive threat to Apple’s business model.”

    The complaint alleges that publishers announced the transition to the agency model for e-book sales to coincide with the release of the iPad. The fact that the publishers allowed Apple to use their trademarks in connection with the unveiling of the iPad and iBooks is put forth as evidence of the alleged collusion.

    "As a direct result of this anticompetitive conduct as intended by the conspiracy, the price of eBooks has soared. The price of new bestselling eBooks increased to an average of $12 - $15—an increase of 33 to 50 percent," the filing continued.

    Anthony Petru and Marcus Mathis are listed as plaintiffs in the case.

    Last year, Connecticut Attorney General Richard Blumenthal conducted a review of e-book pricing over concerns that matching pricing on Apple's iBooks and Amazon's Kindle platforms reflected anticompetitive deals.

    The dispute comes as the e-book industry appears set for explosive growth. According to the new BookStats survey, e-book revenue for trade publishers jumped up by 1274 percent since 2008, reaching $878 million in 2010. E-book net sales increased to 114 million last year, up 1039.6 percent since 2008.

    In 2010, e-books grabbed 6.4 percent of the trade book market, up from just 0.6 percent in 2008. Digital books have performed especially well in the adult fiction category, where they held a 13.6 percent revenue share in 2010.

    BookStats is published cooperatively by the Association of American Publishers and the Book Industry Study Group. The report includes data from close to 2,000 U.S. publishers. Though the survey only released numbers for 2010, e-books are expected to see even further success throughout this year.

    Filed under : General, iPad 44 Comments ] 
    Story topics: iBooks   Print ] [ Story Link ] 


    RSS
    RSS
    Mac Connection End of Summer Sale
    Early 2011 MacBook Pro Model
    Apple
    Price
    Discount
    2.2GHz quad 15" MacBook Pro $2,199.00 $1718.83* $480.17
    2.2GHz quad 17" MacBook Pro $2,499.00 $1,503.49* $559.01
    2.3GHz quad 17" MacBook Pro $2,649.00 $2,036.99* $612.01
    MacBook Pro Model
    Apple
    Price
    Discount
    2.4GHz dual 13" MacBook Pro $1,199.00 $1,086.34 $112.66
    2.8GHz dual 13" MacBook Pro $1,499.00 $1,382.19* $116.81
    2.2GHz quad 15" MacBook Pro $1,799.00 $1,629.54* $196.46
    2.4GHz quad 15" MacBook Pro $2,199.00 $1,971.54* $227.46
    2.4GHz quad 17" MacBook Pro $2,499.00 $2,250.39* $248.61
    *Instant 3% AppleInsider Reader Discount Applied With Coupon code:
    APPINSDRMWB32657

    AppleInsider Features
    Hot Forum Topics

    Recent Articles
    AT&T reportedly unlocking iPhones for deployed military personnel
    Analyst cuts AAPL rating on iPhone subsidy backlash, estimates $1B earnings miss
    AT&T to spend $150M on Lumia launch, more than it did with iPhone
    As 'iPad' becomes synonymous with 'tablet,' Apple must protect brand
    Facebook acquires Instagram for $1 billion
    Apple's Tim Cook awarded $378M in 2011, won't see most of it for years
    Apple's next iPhone predicted to have redesigned 'sleek' unibody case
    AT&T's iPhone unlock process accomplished through Apple's iTunes
    Foxconn employee says Apple placing orders for next iPhone to debut in October
    Most of estimated 21M iOS devices in China concentrated in urban areas
    Universal Pictures now available to re-download on Apple's iCloud
    New aerial images of Apple's planned NC fuel cell, solar farms emerge
    UK ad authority moves closer to '4G' iPad investigation
    Apple unlikely to get Samsung device injunction from US court
    Two more top execs exit RIM as company weighs options
    Apple's Ivy Bridge-powered iMacs rumored to debut in June
    Google rumored to launch sub-$250 7-inch tablet in July
    AT&T will allow out-of-contract customers to unlock their iPhone
    Security issue in Facebook, Dropbox iOS apps requires physical access
    HTC profits collapse 70% in face of competition from Apple, Samsung
    Facebook expected to join Apple, Google & Microsoft on Nasdaq
    Users report 3G connection issues with Apple's new iPad
    Samsung announces estimated $40B in revenue, $5B in profit for Q1 2012
    Apple issues second OS X Java update this week
    Qualcomm, Intel provide Apple with source code in patent battle with Samsung
    Apple share price exceeds Google's as its market cap reaches $590 billion
    Intel sinks 'hundreds of millions' of dollars into Ultrabook ad campaign
    Wikipedia joins Apple in migrating from Google Maps to OpenStreetMaps
    Mac shipments slow on absence of new hardware
    Apple may get 80% tax break to build new Texas campus
    Apple may soon begin selling iPad 2 units built in Brazil
    Apple's 'iPanel' called 'far more than a TV,' expected to launch in 2012
    Biographer says Steve Jobs was legitimately infuriated by Android
    Apple exploring face detection to unlock, customize & interact with iOS devices
    Apple interested in wireless power to charge devices on store shelves
    Briefly: iPad refunds; HonHai raising wages; Nokia Lumia estimates
    'Flashback' trojan estimated to have infected 600K Macs worldwide
    Claim construction tilts toward Apple in US patent lawsuit against Samsung
    Apple reportedly 'noodling with' 7.85-inch iPad prototype
    Apple reluctant to settle e-book pricing probe as antitrust specter looms








    AppleInsider RSS Feed
    AppleInsider © 1997-2011
    Please review our Privacy Policy.
    Written/Edited/Compiled by the AppleInsider Staff.