Andre Yoskowitz
2 Aug 2010 23:55
Connecticut's Attorney General Richard Blumenthal seems to think that Apple and Amazon may be enjoying an unfair advantage in the e-book market and has accused the two companies of price fixing.
Blumenthal has requested meetings with the tech giants in an effort to discuss the deals they have with massive e-book publishers Macmillan, Simon & Schuster, Hachette, HarperCollins and Penguin.
The AG says both companies have deals with the publishers that promise them the best e-book prices over any competition.
Such "most favored nation" clauses blocks the publishers from offering discounts deeper than what Apple or Amazon receives. While the deals are not illegal under current antitrust laws, they certainly fall into a gray area.
"The concerns are compounded, and hence potentially more troublesome, since this arrangement appears to be something that will be agreed to by the largest e-book publishers in the United States and two competitors who combined will likely command the greatest retail e-book share," Blumenthal added, via CNNMoney.