Ibooks Collision

Some publishers already settling on e-book pricing, but Apple's not budging yet

Apple, Penguin, and Macmillan haven't shown any signs of settling with the Department of Justice over charges of e-book pricing collusion issued yesterday, sources say. However, the other publishers in the suit, HarperCollins, Hachette, and Simon & Schuster, are likely to settle before the investigation goes any further.

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Apple hit with antitrust lawsuit over e-book pricing

The U.S. Justice Department has just slapped Apple and their various publishing partners, like HarperCollins, Macmillan, and Penguin, with chrages of e-book pricing collusion. Sources say that HarperCollins is in a hurry to get the issue settled as soon as today, but Penguin was ready to put up a fight in court.

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Apple and publishers reportedly willing to abandon iBooks "agency model" to appease Justice Department

Under the traditional book-selling model, retailers like B&N, Amazon, and others could get 50% or more of the revenue from the sale of a book. Under Apple's "agency model", they get 30%. The traditional model is retailer-centric. Apple's model is publisher-centric.

This upsets the US Justice Department. Under the old model, the retailer set the price and so could sell the book at any price they wanted, even at a loss. Under Apple's model, the publisher sets the price, so there's no retailer discount.

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