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Justice Department eBook Lawsuit Against Apple, Publishers Advances Toward Settlement: Sources (Huffington post)
By Diane Bartz
WASHINGTON (Reuters) - The Justice Department could reach a settlement in the
next few weeks with Apple Inc and some of the major publishers suspected of
colluding to push up electronic book prices, according to two people close to
the negotiations.
While negotiations are still fluid, the settlement is expected to eliminate
Apple's so-called "most favored nation" status, which had prevented the
publishers from selling lower-priced e-books through rival retailers such as
Amazon.com Inc or Barnes & Noble Inc , the people said.
The deal could also force a shift, at least temporarily, in pricing control
from publishers to retailers, one of the people said.
Such a move to a "wholesale model" would not only benefit consumers but also
Amazon, which had been the leading bargain e-book retailer with its Kindle
reader.
"It would be a positive for Amazon because the company's greatest strength is
as a high-volume, low-price retailer and the wholesale model plays into that,"
said Jim Friedland, an analyst at Cowen & Co.
The Justice Department is seeking to unravel agreements Apple secured from
five publishers about two years ago, as the Silicon Valley company was
launching its iPad and was seeking to ...
Electronic Power Benny Benassi
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