Apple Backs Down In European Antitrust Case, Leaving Coast Clear For Amazon

Apple and a group of the world's leading book publishers have thrown in the towel in their European battle to keep their pricing agreements in place. An announcement by the European Commission says that publishers Hachette, Macmillan, HarperCollins, and Simon & Schuster will no longer give preferential treatment to Apple. The result has handed victory on a silver platter to Amazon, which will still be allowed to slash book prices on a whim, just in time for its Old-Continent launch of the Kindle Fire.

The key points of the ruling are these: Publishers will not interfere in any discounting practices by resellers; and any price agreements between publishers and Apple are verboten for another five years—by then, the assumption is, the market will be developed enough to cope with it. Both Apple and the four publishers have professed themselves to be in disagreement with the Commission's preliminary assessment.

Any existing contracts between the four publishing houses and smaller online retailers are to be renegotiated, and some older contracts limiting their ability to reduce book prices will be ripped up, continues the ruling. A fifth publishing house, although not mentioned by name, is thought to be Penguin, which also enjoys a price agreement with Apple.

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  • Rusty Neff

    "The result has handed victory on a silver platter to Amazon, which will still be allowed to slash book prices on a whim, just in time for its Old-Continent launch of the Kindle Fire." That's one way to look at it. Another is that Apple will now no longer be able to force higher prices on consumers (with the blessing of publishers).

    Let's just try this argument on for size if we just switch the names Apple and Amazon. Let's pretend Amazon engaged with a cartel of publishes to artifcially mainain a high  cost for books, and Apple was fighting to lower prices. Would people be claiming Apple was acting in an illegal maner? I doubt it.