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Gapers Block published from April 22, 2003 to Jan. 1, 2016. The site will remain up in archive form. Please visit Third Coast Review, a new site by several GB alumni.
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Wednesday, May 12

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News Thu Apr 12 2012

Several States Sue Publishers in Anti-Trust Suit

Illinois joined 15 other states today in an antitrust lawsuit against Apple and several major publishers, charging that the companies colluded to fix the sale prices of electronic books.

Texas attorney general Greg Abbott said in an official statement: "Colluding to fix prices violates antitrust laws and raises costs for customers. In this case, three of the nation's largest publishing companies worked together to gain control of retail prices and raise the price of e-books. The defendants colluded to use the agency distribution model to effectively eliminate free market competition and allow publishers - rather than the marketplace - to set the price of e-books."

The multi-state lawsuit charges that this practice resulted in e-book customers paying more than $100 million in overcharges. The practice of artificially inflating prices began in late 2009, when Apple was getting ready to introduce the iPad, reports. In the same article, Steve Jobs is alleged to have told his biographer he approached publishers with "you set the price, we get our 30 percent and yes, the customer pays a little more, but that's what you want anyway."

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Book Club is the literary section of Gapers Block, covering Chicago's authors, poets and literary events. More...

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