Open

Coming up

Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Algerian election: Bouteflika votes in wheelchair

Read more

MEDIAWATCH

Algeria's media: a mixture of censorship and free speech

Read more

DEBATE

Algeria: What's the Choice? Incumbent Bouteflika Votes in Wheelchair

Read more

WEB NEWS

Nigerian web users call for end to violence

Read more

FOCUS

Bitcoin in the US: A monetary revolution?

Read more

ENCORE!

Fast cars and slow trains

Read more

WEB NEWS

Chile: online mobilization to help Valparaiso fire victims

Read more

FACE-OFF

François Hollande: France's most unpopular president

Read more

THE INTERVIEW

Mansouria Mokhefi, Middle East and North Africa specialist

Read more

  • French troops free five aid workers kidnapped in Mali by Islamists

    Read more

  • In pictures: Iranian woman pardons son’s killer at the gallows

    Read more

  • Russia and West agree on steps to ease Ukraine crisis

    Read more

  • With a strong French presence, veterans and fresh faces, Cannes aims to please

    Read more

  • Low turnout in Algerian election tipped to return Bouteflika

    Read more

  • After cup defeat, Spanish pundits read last rites for Barcelona

    Read more

  • Frantic search for survivors of sunken South Korea ferry

    Read more

  • India heads to polls in single largest day of voting

    Read more

  • Ukraine talks open in Geneva as Putin talks tough on TV

    Read more

  • Pro-Russian separatists killed in attack on Black Sea base

    Read more

  • Man executed in Texas for 2002 triple murder

    Read more

  • Scandal-hit French doctor Jacques Servier dies at 92

    Read more

  • Belgian head of wildlife reserve shot in DR Congo

    Read more

  • Crunch talks on Ukraine begin in Geneva

    Read more

  • Stagehand of God? Maradona's legendary goal inspires a play

    Read more

  • US rolls out red carpet for French critic of capitalism

    Read more

  • N. Korea not amused by London hair salon's Kim Jong-un ad

    Read more

  • Real Madrid beat old foes Barcelona to lift Copa del Rey

    Read more

  • France's new PM targets welfare in drive to cut spending

    Read more

  • Campaigning against Bouteflika's re-election... in France

    Read more

  • Brazil club Mineiro cancel Anelka signing after no-show

    Read more

  • Syria 'torture' photos silence UN Security Council members

    Read more

  • Paris laboratory loses deadly SARS virus samples

    Read more

  • More than 100 schoolgirls kidnapped in northeast Nigeria

    Read more

  • New York police disband unit targeting Muslims

    Read more

Business

Amazon wins EU e-book pricing battle with Apple

©

Text by News Wires

Latest update : 2012-12-13

Amazon scored a victory over rivals on Thursday after Apple and four other major publishers conceded to reduce pricing restrictions on content offered at the online giant and other book-sellers in response to an antitrust probe.

European Union regulators ended an antitrust probe into e-book prices on Thursday, accepting an offer by Apple and four publishers to ease pricing restrictions on Amazon and other retailers.

The decision hands online retailer Amazon a victory in its attempt to sell e-books cheaper than rivals in a fast-growing market publishers hope will boost revenue and customer numbers. Reuters first reported in November that the Commission was accepting the settlement offer.

The European Commission said on Thursday the concessions from Apple and the publishers soothed concerns that their pricing deals curbed competition.

“The commitments proposed by Apple and the four publishers will restore normal competitive conditions in this new and fast-moving market, to the benefit of the buyers and readers of e-books,” EU Competition Commissioner Joaquin Almunia said.

Apple and the publishers offered to let retailers set prices or discounts for a period of two years, and also to suspend “most-favoured nation” contracts for five years.

Such clauses bar publishers Simon & Schuster, News Corp. unit HarperCollins, Lagardere SCA’s Hachette Livre and Verlagsgruppe Georg von Holtzbrinck, the owner of German company Macmillan, from making deals with rival retailers to sell e-books more cheaply than Apple.

The agreements, which critics say prevent Amazon and other retailers from undercutting Apple’s charges, led to the EU antitrust investigation in December last year.

Pearson Plc’s Penguin group, which is also under investigation, was not part of Thursday’s settlement. The Commission said Penguin had offered concessions expected to resolve the matter with the competition authorities.

Companies found guilty of infringing EU rules can be fined up to 10 percent of their global sales, which in Apple’s case could reach $15.6 billion, based on its 2012 fiscal year.

UBS analysts estimate e-books account for about 30 percent of the U.S. book market and 20 percent of sales in Britain but are minuscule elsewhere. Amazon charged $9.99 per book when it launched its Kindle e-reader.

Apple’s agency model let publishers set prices in return for a 30 percent cut to the maker of iPhone and iPad.

According to Albert Greco, a professor at Fordham University, Amazon’s share of the U.S. e-book market reaches 65 percent, ahead of Barnes & Noble’s 27 percent share.

HarperCollins, Simon & Schuster and Hachette have settled with the U.S. Department of Justice in a similar investigation but Apple, Penguin Group and Macmillan have not.

(REUTERS)

 

Date created : 2012-12-13

  • USA

    US sues Apple, publishers over e-book price fixing scheme

    Read more

  • TECHNOLOGY

    Tokyo court rejects Apple claims, sides with Samsung

    Read more

  • BUSINESS

    Apple world’s most valuable company ever recorded

    Read more

Comments

COMMENT(S)