Apple calls charges of collusion "simply not true"

BookBrowse News - The Full Story

Apple calls charges of collusion "simply not true"

Apr 13 2012

A day after the Justice Department filed suit against Apple and five publishers over the agency model for e-books, Apple called the charges of collusion "simply not true."

Quoted in the Wall Street Journal, Apple spokeswoman Natalie Kerris said, "The launch of the iBookstore in 2010 fostered innovation and competition, breaking Amazon's monopolistic grip on the publishing industry." She said, too, that the company uses something like the agency model in other areas. "Just as we've allowed developers to set prices on the App Store, publishers set prices on the iBookstore," she said.

Barnes & Noble's stock took a hit on the news that the Justice Department was filing suit against Apple and five of the six major publishers (three of which have already announced that they will settle rather than face the enormous costs of fighting a case against a government agency) because, as Forrester analyst James McQuivey points out, heavy e-book discounting resulting from the suit will create a huge problem for Barnes & Noble as "Amazon is building a tremendous customer relationship that they can monetize across many categories of goods, not just books. Even if they decide to take a hit on e-books, they can find other places to make up that margin. Barnes & Noble doesn't have that same luxury."

The irony is that, from a strictly financial point of view, publishers are better off selling e-books on a traditional sales basis, even if heavily discounted.

More News Stories

Member Benefits

Join Now!

Check the advantages!
Just $10 for 3 months or $35 for a year

    •  
    • FREE
    • MEMBER
    • Range of media reviews for each book
    • Excerpts of all featured books
    • Author bios, interviews and pronunciations
    • Browse by genre
    • Book club discussions
    • Book club advice and reading guides
    • BookBrowse reviews and "beyond the book" back-stories
    •  
    • Reviews of notable books ahead of publication
    •  
    • Free books to read and review (US Only)
    •  
    • Browse for the best books by time period, setting & theme
    •  
    • Read-alike suggestions for thousands of books and authors
    •  
    • 'My Reading List" to keep track of your books
    •  
Sign up, win books!

Editor's Choice

  • Book Jacket: A Man Called Ove
    A Man Called Ove
    by Fredrik Backman
    Reading A Man Called Ove was like having Christmas arrive early. Set in Sweden, this debut novel is ...
  • Book Jacket
    The Search
    by Geoff Dyer
    All hail the independent publisher! In May 2014, Graywolf Press brought two of long-revered British ...
  • Book Jacket
    Mrs. Hemingway
    by Naomi Wood
    Naomi Wood's latest novel, Mrs. Hemingway, is a fictionalized biography covering in turn writer...

First Impressions

Members read and review books ahead
of publication. See what they think
in First Impressions!

Books that
expand your
horizons.

Visitors can view a lot of BookBrowse for free. Full access is for members only

Find out more.

Book Discussions
Book Jacket

The City
by Dean Koontz

Published Jul. 2014

Join the discussion!

  1.  34The Arsonist:
    Sue Miller
  2.  119Tomlinson Hill:
    Chris Tomlinson

All Discussions

Win this book!
Win The Angel of Losses

The Angel of Losses

"Family saga, mystery, and myth intersect in Feldman's debut novel." - Booklist

Enter

Word Play

Solve this clue:

E C H A Silver L

and be entered to win..

Books thatinspire you.Handpicked.

Books you'll stay up all night reading; books that will whisk you to faraway places and times, books that will expand your mind and inspire you -- the kinds of books you just can't wait to tell your friends about.