Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Amazon, major publishers win dismissal of antitrust lawsuits over book pricing

Stock Markets Sep 29, 2022 07:45PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The Amazon logo is seen at the company's logistics centre in Boves, France, October 6, 2021 REUTERS/Pascal Rossignol/File Photo
 
AMZN
-1.63%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Jonathan Stempel

NEW YORK (Reuters) - A federal judge on Thursday dismissed two antitrust lawsuits accusing Amazon.com Inc (NASDAQ:AMZN) and five large publishers of illegally conspiring to fix U.S. prices of electronic and traditional books, causing consumers and bookstores to pay more.

U.S. District Judge Gregory Woods in Manhattan accepted a magistrate judge's recommendations to end both cases against Amazon, Hachette Book Group, HarperCollins Publishers, Macmillan Publishing Group, Penguin Random House and Simon & Schuster.

Consumers accused the defendants of signing agreements that let the publishers inflate e-book prices by locking in a 30% "agency" fee for Amazon on each sale, and guaranteeing that Amazon's prices would not be undercut.

Retail booksellers, meanwhile, alleged that Amazon had been awarded a "discriminatory discount" on hardbacks, paperbacks and mass-produced books, forcing them to pay higher wholesale prices to the publishers and depressing book sales.

According to the plaintiffs, Amazon commands 90% of retail e-book sales and 50% of print trade book sales, while the publishers account for 80% of both kinds of books.

But in two opinions totaling 113 pages, U.S. Magistrate Judge Valerie Figueredo recommended last month that both lawsuits be dismissed, citing a lack of evidence of collusion.

She found it "telling" in the e-book case that the consumers offered "no plausible explanation for why the publishers would have been motivated to participate in a conspiracy that further entrenched Amazon's dominance as an e-book retailer."

Woods adopted Figueredo's reasoning in full. The lawsuits were dismissed without prejudice, meaning the plaintiffs can try amending their complaints.

Lawyers for the plaintiffs did not immediately respond to requests for comment. Amazon had no immediate comment.

The trade book case was led by Bookends & Beginnings, a bookseller in Evanston, Illinois.

The cases are In re Amazon.com Inc e-Book Antitrust Litigation, U.S. District Court, Southern District of New York, No. 21-00351; and Bookends & Beginnings LLC v Amazon.com Inc et al in the same court, No. 21-02584.

Amazon, major publishers win dismissal of antitrust lawsuits over book pricing
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email