New lawsuit accuses Amazon of e-book worth fixing
Amazon is facing a new lawsuit alleging that a partnership between the company and five publishers has set prices for e-books, reports The Wall Street Journal.
The lawsuit filed by law firm Hagens Berman in a federal court in New York, alleges that publishers pay more and more in the Amazon, which increases the retail price of e-books sold on the platform. Thanks to a partnership between Amazon and publishers – HarperCollins Publishers, Hachette Book Group, Penguin Random House, Simon & Schuster, and Macmillan – Amazon’s price is the price publishers pay for other retailers, as well as other retailers to offer books at lower prices, according to in this case.
The lawsuit alleges that five publishers accounted for 80% of the books sold in the US, and that the plan is a “conspiracy to set prices for e-books,” which they say violates the Poverty Alleviation Act.
In another e-book case back in 2012, the Justice Department accused Apple of plotting with several publishers to compete with Amazon, raising e-book prices above the $ 9.99 price target of Amazon. Hagens Berman was also an adviser on Apple’s case. The publishers settled down, but Apple went to court and lost, ultimately accepting $ 450 million, and $ 400 million in compensation as a return to consumers. Apple denied any wrongdoing on the e-book prices.
Amazon has refused to respond, as has Penguin Random House. Some of the publishers mentioned in the case did not immediately respond to a request for comment from The Verge on Sunday.
Edit January 17th 1:07 PM ET: He adds that Amazon and the Penguin Random House declined to comment.